Presently the minimum requirement is to pay superannuation, such that the fund receives the payment within 28 days of quarter end, to avoid the very punitive Super Guarantee Charge. This change takes advantage of relatively new technologies associated with Single Touch Payroll (STP) and is designed to give employees and the ATO better visibility of whether the employer is up to date with paying super. 

It was announced on 28^th February 2023 that from 01/07/2025 individuals with a total superannuation balance over $3 million will be subject to additional tax of 15% on “earnings” on their balance over $3 million. This new and distinct tax is to be imposed on the difference in total superannuation balances at the start and end of a financial year, adjusted for withdrawals and contributions. On 31^st March 2023, a consultation paper was released by Treasury with submissions closing on 17^th April 2023. At this stage we are not aware of any published outcomes arising from the “consultation” process.

The consultation paper states that the $3m threshold will not be indexed and as such “provides certainty to people when arranging their tax and financial affairs”. Statements such as these are complete spin! Not indexing a threshold does nothing to increase certainty. On the contrary, changes to superannuation like this will totally undermine peoples’ confidence (certainty) in the system.     

COMMENT AND ACTION and pic to be discussed with Stacey

As currently legislated the progression of the Super Guarantee Rate is as follows:

1 July 2023  -  30 June 2024                     11.00%

1 July 2024  -  30 June 2025                     11.50%

1 July 2025  -  30 June 2026                     12.00%

1 July 2026  -  30 June 2027                     12.00%

1 July 2027  -  30 June 2028 onwards  12.00%

COMMENT to be discussed with Stacey.  And Pics