Quite often Employers will review their staff members' remuneration packages at the commencement of each financial year. Please note the compulsory changes to super that will impact your staff members' salaries from 1 July and ultimately your overall future budget forecasts.
The Superannuation Guarantee Contributions (SGC) will increase from 9.25% to 9.5% effective 1 July 2014.
The increase in SGC commenced with a stepped 0.25% increase in the 2013/2014 financial year, and then a 0.25% increase in the 2014/2015 year. As announced in the Federal Budget on 13 May, the SCG rate will freeze until June 2018 after which time the SGC rate will increase by 0.5% until it reaches 12%.
An additional clause may need to be added to employment contracts to ensure that employees are aware of the compliance with the changes to superannuation.
For assistance with preparing employment contracts please contact your usual Hanrick Curran adviser or our HR Consultants Kelly Langdon or Emily Moriarty on 07 3218 3900.