In July 2014 we released a news article titled “(AUST) 2014-2015 Tax Changes Effective 1 July 2014”, where we informed that the Employer Superannuation Guarantee (SG) payments will increase to 9.5%. It informs that the level that employers will need to contribute to an employee’s superannuation will remain at 9.5% until 30 June 2018. The rate will then increase by 0.5% each year until it reaches 12% in 2022-23.

However, on the 3 September 2014; the mining tax repeal was passed and has delayed the increases to compulsory superannuation for several more years. Under the mining tax repeal amendments, the increase will not hit 12% until 2025; which means the current 9.5% contribution will now not change until 2021.

According to the analysis by “Industry Super Australia for The Australian”, a typical 40-year old worker on a median full time salary of $80,000 will be $21,930 worse off.

To further their analysis:

  • 18-year olds will lose $32,915 on an income of $15,000
  • 30-year olds will lose $21,386 on an income of $15,000; $19,632 on an income of $50,000; $31,411 on an income of $80,000; $39,264 on an income of $100,000; and $68,711 on an income of $175,000
  • 40-year olds will lose $14,024 on an income of $15,000; $13,706 on an income of $50,000; $27,412 on an income of $100,000; and $47,971 on an income of $175,000
  • 50-year olds will lose $7421 on an income of $15,000; $9569 on an income of $50,000; $15,310 on an income of $80,000; $19,138 on an income of $100,000; and $33,491 on an income of $175,000
  • 60-year olds will lose $1883 on an income of $15,000; $3530 an on income of $50,000; $5648 on an income of $80,000; $7061 on an income of $100,000; and $12,356 on an income of $12,356.

If you have any queries please do not hesitate to give us a call on 1-800-048-006.