The Federal Coalition Government has drafted proposed changes to superannuation law which, if passed, will mean that the increase from 9.25% to 9.5% for employee superannuation contributions will be deferred from 1 July 2014 to 1 July 2016. Subsequent increases would be 0.5% each year, reaching 12% for 1 July 2021 onwards.
At this stage, the draft legislation has been released for comment and will be introduced to Parliament most likely before year end. It will require the support of the independents in the Senate to be passed. Unless the changes are passed, the legislated super increases by the former Labor Government will continue to apply.