Australia announces amendments to the Superannuation fund rate

Effective from 1 July 2023, the government of Australia has increased the Superannuation Guarantee rate from 10.50% to 11%.

Employers in Australia are mandated to contribute 11% of their employees’ “Ordinary Time Earnings” into their super account at least 4 times a year. This contribution is for the benefit of employees to build up savings for retirement.

This rate is scheduled to increase every start of the Australian tax year until 1 July 2025 when it is expected to remain constant at 12%.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.