Superannuation FAQ

Employer superannuation contributions are increasing to 10% from 1 July 2021

The superannuation guarantee rate will increase from 9.5% to 10% on 1 July 2021. This means your employer must contribute 10% of your ordinary time earnings to your nominated superannuation fund.

Employers are legally responsible for making this contribution to an employee’s superannuation fund.

Please check your payslip to ensure your employer is making the required superannuation contribution of 10% as from 1 July 2021.

Am I still entitled to the superannuation increase if I have a total remuneration package?
Some employment contracts specify that superannuation is included in an employee’s total remuneration package. If so, the employer could reduce the employee’s base salary and other monetary entitlements included in their total package in order to meet the legal obligation to increase superannuation. Depending on the contract, this may be permissible so long as the total value of employee’s remuneration package remains unchanged.

However, your employer must still make sure that your base rate of pay does not fall below modern award or enterprise agreement minimum rates of pay, if you are covered by one of these.

If you are notified by your employer that the super increase will result in a decrease to your base salary, insist that the legislated superannuation increase should not impact your take home pay to your detriment.

What if I have a defined superannuation benefits scheme?

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

Can I choose my own super fund?
If your employment is covered by an enterprise agreement made on or after 1 January 2021, your enterprise agreement must provide employees with a choice of superannuation fund. If an enterprise agreement made on or after 1 January 2021 does not contain this, any restrictions regarding your choice of fund may not be enforceable.

Need help?
This publication is intended for general information only. If you require specific advice tailored for your individual circumstances, please contact the Workplace Advice and Support (WAS) team with a copy of your employment contract by clicking here.

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