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.
If you have any queries please do not hesitate to contact Ted Davis or Barb Bacciarelli on 8232 2820.