The Superannuation Guarantee rate – to be paused for three years at 9.5%

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The Budget proposes to increase the SG rate from 9.25% to 9.5% for 2014/15 and the 9.5% rate will apply for the following three years. With effect from 1 July 2018 the SG rate will increase to 10% and a further 0.5% until the rate reaches 12% in respect of the 2022-23 financial year.

The now proposed, as against the previously proposed, rates are set out in the following table:

Financial year

Budget 2014

Previously (as legislated)

2014/15

9.5%

9.5%

2015/16

9.5%

10%

2016/17

9.5%

10.5%

2017/18

9.5%

11%

2018/19

10%

11.5%

2019/20

10.5%

12%

2020/21

11%

12%

2021/22

11.5%

12%

2022/23

12%

12%