As you may know, employers are currently only obliged to pay the statutory superannuation guarantee charge (SGC) in relation to eligible employees who are under the age of 70. The SGC is currently 9% of an employee's ordinary time earnings.
However, this is all going to change. The Federal Government has just passed amendments to the statutory superannuation scheme which will impact on the SGC and the scope of its application.
Effective 1 July 2013, increases to the SGC will be "phased in" so that an SGC of 12% will be payable from 1 July 2019 onwards as follows:
| Financial Year | Charge percentage |
| 2013/2014 | 9.25 |
| 2014/2015 | 9.5 |
| 2015/2016 | 10 |
| 2016/2017 | 10.5 |
| 2017/2018 | 11 |
| 2018/2019 | 11.5 |
| 2019/2020 and onwards | 12 |
Also effective 1 July 2013, the age limit will be abolished so that employers will have an SGC liability for all eligible employees regardless of their age.
The implementation of these changes to the statutory superannuation scheme is contingent on a number of mining tax reforms being passed before 1 July 2013. Assuming they go through, the above changes will go ahead.
Now is the time to consider how these additional charges will impact on your business.
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