Important changes to your superannuation

From 1 July 2022, your employer must contribute 10.5% of your ordinary time earnings to your nominated superannuation fund.

Check your payslips to ensure the required superannuation guarantee contribution of 10.5% is being paid by your employer.
For most workers on awards and enterprise agreements, this means an increase in total remuneration, because your base salary remains the same, while the contribution to your superannuation component increases.

What if I have an individual employment contract?
For workers on individual employment contracts, whether you receive an increase in superannuation contributions will depend on the wording of your contract, the current superannuation contributions made by your employer and your employer’s approach.

If superannuation is included in your total remuneration package, it may be possible for your employer to decrease your base pay to meet their legal obligation to increase your superannuation. However, your employer must ensure your base pay does not fall below the minimum rates under your award, enterprise agreement, or employment contract.

The original intention of the Superannuation Guarantee legislation was clearly for superannuation to be funded by employers on top of ordinary wages.

Professionals Australia believes businesses should not cut your salary to meet the Superannuation Guarantee payment.

If your employer has advised your superannuation increase will be met through a decrease to your salary, contact Professionals Australia for advice.

What if I have a defined superannuation benefits scheme?
If your superannuation is governed by a defined benefits superannuation scheme, the increase to the superannuation guarantee rate may not be applicable. Generally, under defined benefit schemes, superannuation benefits are based on the rules of the superannuation fund, so you will need to contact your superannuation fund to find out more.

Where can I get more advice?
This email includes general information only.

If you require specific advice in relation to your individual circumstances, contact the Workplace Advice and Support (WAS) team with a copy of your employment contract by clicking here. Alternatively, you can contact us on 1300 273 762 or at was@professionalsaustralia.org.au to submit your query.

If you are covered by an enterprise agreement, you can also contact your local workplace delegate, organiser or industrial officer for assistance.