From 1 July 2021, the Superannuation Guarantee Charge rate will increase to 10%. It will further increase by half a per cent each year for the next four years to 12% in the 2026 financial year.
HOW DOES THIS AFFECT THE BUSINESS OWNER?
- CASH FLOW
The business owner has to decide, will they absorb the extra cost of the increase, or will the staff incorporate this into their pay packet?
Is the above factor affecting the bottom line significantly that your customers will have to bear the part or total cost of the increase? What impact will this have on your competitiveness? Remember, the change will be happening over the next four years, so do you work on a strategy now for the next four years, or do you take a wait and see approach after year one?
What will the impact be on them if their take-home pay is reduced? Could this be the start of an employee merry go round when in effect, this will apply to all employers? Remember the costs of onboarding new staff.
HOW CAN MCA ASSIST?
- NUMBER CRUNCHING
We can crunch your numbers to help you with cash flow impact, profitability impact, and pricing impact.
We can help you strategise a plan to communicate any increase required to your clients/customers, or staff.
Should you have any questions on the items above, please contact on 02 9923 2959 or firstname.lastname@example.org