Superannuation guarantee
Announcement
The timetable to increase the superannuation guarantee (SG) to 12% has been amended. Instead of pausing at 9.25% as had previously been announced, the SG rate will now increase to 9.5% on 1 July 2014 and remain at this level until 30 June 2018. The SG rate will then increase each year by 0.5% until it reaches 12% in 2022-23.
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| Financial year | SG Rate |
| 2019/20 | 10.5% |
| 2020/21 | 11.0% |
| 2021/22 | 11.5% |
| 2022/23 | 12.0% |
Current rules
Even though the SG was legislated to go to 9.5% on 1 July 2014, the expectation was that the SG rate would remain frozen at 9.25% in accordance with legislation that was introduced (but not passed) in late 2013.
Impact on you
There is now certainty over the amount of superannuation you can expect to receive from 1 July this year.
Increase in top marginal tax rate
Announcement
From 1 July 2014, and for the next three financial years, the top marginal tax rate (which applies to incomes above $180,000) will increase by two percentage points to 47% plus Medicare levy (which is already legislated to increase to 2% from 1 July 2014).
With Medicare levy included, the top marginal rate will be 49% from 1 July 2014 to 30 June 2017.
Personal income tax rates and thresholds (not including the Medicare levy)
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