The rate of super guarantee contributions will increase to 12 percent gradually, beginning with an increase to 9.5 percent on 1 July 2014. The rate will then increase by 0.5 percent on 1 July each year until it reaches 12 percent on 1 July 2019.

Q: Why is the rate of super guarantee increasing over a seven-year period?

A: The government introduced legislation that requires a gradual rise in the super guarantee rate to ensure the increases are implemented slowly. This will allow employers and employees time to adjust and plan ahead for their wage negotiations.

Q: I have a 73-year-old employee. Now that I have to make super guarantee payments for them, do I need to pay contributions to cover the last three years?

A: No. The legislation is not retrospective and you will not have to back-pay contributions.