QTPA Member Alert | SUPPERANNUATION GUARANTEE LEVY INCREASE (3/4/2012)

SUPPERANNUATION GUARANTEE LEVY INCREASE

The increase to the “Superannuation Guarantee Levy” has passed through Parliament increasing the Levy from the current 9% to 12%  from July 1st 2019.

NB: The Superannuation Guarantee Levy is payable by employers who do not contribute a specified minimum levy of superannuation into an approved fund for their employees.  It is in the interests of employers to make the necessary superannuation contributions rather than to pay the levy, because unlike superannuation contributions the levy is not tax-deductible.

 Employers who pay over award wages and/or who negotiate new enterprise agreements are generally entitled to absorb the superannuation increases into the wage increases that would have otherwise been paid.

The following is the “Phasing-In Schedule”:

Year 1 starting on 1 July 2013                                                       9.25%

Year 2 starting on 1 July 2014                                                       9.5%

Year 3 starting on 1 July 2015                                                       10%

Year 4 starting on 1 July 2016                                                       10.5%

Year 5 starting on 1 July 2017                                                       11%

Year 6 starting on 1 July 2018                                                       11.5%

Year 7 starting on or after the first of July 2019.                        12%