Workers paid on ‘including super’ basis may get a shock on July 1
Got an email from payroll on Friday. Legislated super increase will be decreasing my take home pay come July. PSA to all the rest of you on TFR contracts.
https://www.afr.com/policy/tax-and-super/workers-paid-including-super-may-get-a-shock-on-july-1-20210510-p57qevOpen linkView original on beehaw.org
4 replies
"Including super" is such a rort. For anyone taking on a new contract between now and 2025 (when the super guarantee increments stop), PLEASE negotiate for a "before super" contract.
E.g. If you've been offered $80k including super, negotiate for (80,000 / 111 * 100) == $72,072 excluding super.
This means that if in the next 2 years your pay is stagnant, you would end up with (72,072 * 112/100) == $80,720 -- a whopping $720 more towards your super, come July 2025
The government should really just close the loophole.
Are you in an industry where it is easy to find a new employer? Easiest way to get a pay rise is finding a new employer.