You're about to get more super. Here's all you need to know
The guarantee, which is the minimum amount employers must pay into their employees super fund, has increased from 11.5 per cent to 12 per cent, giving the average worker hundreds of dollars more in super contributions a year.
This latest increase marks the end of years of incremental increases to the minimum super contribution requirement from 9 per cent to 12 per cent after it was legislated back in 2012.
This is the final scheduled increase mandated by the Australian Taxation Office, which must be paid quarterly, although it can be paid more often.
This month also marks the time when superannuation payments must be included in the government's Parental Leave Pay scheme. The superannuation increase also applies to Commonwealth Parental Leave Pay, benefiting millions of Australians. It will narrow the gender super gap by around a quarter, which is about $50,000 for Australians nearing retirement.
What do I need to do?
Check your next payslip to ensure that the new rate has been applied to the superannuation your employer has paid on your behalf into your super fund. To get the most out of the extra payments, make sure you consolidate your super into one fund to avoid paying extra fees.
Also, take a moment to check how much you're paying in fees to your super fund, compare its performance to see if it's holding back your super compared to other funds, and check your fund is the best fit for your age and retirement goals.
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