04 Jun Budget puts four year freeze on super guarantee rises
The Federal Government has announced that it will introduce a four year freeze on increases to the super guarantee from 1 July 2014.
The 2014-2015 Budget released by the government on 13 May 2014 states that the Abbott government will continue to increase the superannuation guarantee from 9.25% to 12% but this will take place over a longer time period. The superannuation guarantee will increase to 9.5% on July 1 2014 and will remain there until June 30 2018.
Treasurer Joe Hockey said in a statement that after June 30, 2018 the superannuation guarantee will then “increase by 0.5 per cent each year until it reaches 12 per cent in 2022-23, one year later than previously proposed.”
Finance Minister Mathias Cormann said the rescheduling would make it clear to business just what rate they had to pay.
Queries:
If you have any queries please do not hesitate to contact Ted Davis or Barb Bacciarelli on 8232 2820.
Ted Davis