From 1 July 2021, the employer pension contribution rate will be increased to 10% and from 2025 to 12%.
In addition to the increase in the employer’s pension guarantee rate, the pension will also be adjusted in the following aspects from July 1, 2021:
- the pre-tax pension contribution cap will be increased from $25,000 to $27,500;
- the after-tax pension contribution cap will be increased from $100,000 to $110,000;
- the limit on the balance of the self-managed pension individual account will be increased from $1.6m to $1.7m;
- The current maximum contribution base is $57,090 per quarter for pre-tax wages, which means that employers will no longer be required to contribute to their employees’ pensions once their quarterly pre-tax wages exceed the above amount. Theoretically, this amount will also be raised every year, and the amount for the 2021-22 fiscal year has not yet been announced.
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