SG rates change again - but possibly for the last time

It’s official – the current SG rate of 9.5% will continue unchanged for the next 6 financial years.  The SG rate will increase to 10% from 1 July 2021 and thereafter will continue to increase by 50 basis points until it reaches 12% on 1 July 2025.

The SG rates per financial year are:

2014/15          9.5%

2015/16          9.5%

2016/17          9.5%

2017/18          9.5%

2018/19          9.5%

2019/20          9.5%

2020/21          9.5%

2021/22          10.0%

2022/23          10.5%

2023/24          11.0%

2024/25          11.5%

2025/26          12.0%

This change has been enacted as part of the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 which received Royal Asset on 5 September 2014.

Comment:

This change in the SG rate resulted from the Government’s negotiations with the minor party senators and is the price the Government has had to pay to obtain support for the repeal of the Minerals Resource Rent Tax.  

This latest change defers reaching the 12% SG rate for two or three Parliaments and/or Prime Ministers.