SGC is set to increase to 10% in 2021.
The scheduled Superannuation Guarantee Charge (SGC) increases, already enacted by legislation, will see the current rate of 9.5 per cent grow to 10 per cent from July 2021, then a further 0.5 percentage point each year until it reaches 12 per cent in July of 2025.
A debate is now brewing about whether the rise will stop employers from increasing wages. The political divide has the government on one side wanting the increase scrapped given its priority is now to lift Australia out of the pandemic caused recession, with the unions and Labour on the other arguing that retirement savings have been battered during the Covid-19 pandemic and any delay in increasing SGC could not only leave workers with less money but see more Australians facing poverty in retirement.
No decision will be made until closer to next year’s budget, due to be handed down in May, but a recent report points to a strong Government push for compulsory increases being scrapped, at least in the immediate future.
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