Tomorrow is the start of the new financial year and as always, there are changes to the super system. Here are five important changes that come into effect on 1 July.

1. Employers will now contribute 10.5% to super

The rate of employer contributions to super (the so-called ‘super guarantee levy’) is increasing from 10.0% to 10.5%. If you earn $100,000, your employer will now contribute $10,500 rather than $10,000 to your super fund.

Super is payable on salary and wages, including bonuses, but not overtime. Technically, it is not payable on amounts in excess of a salary of $240,880 ($60,220 per quarter) although many employers choose to pay it.

There is no change to the concessional contributions cap of $27,500. Concessional contributions are the employer’s 10.5% plus any amount you choose to salary sacrifice, plus any amount you contribute and claim a tax deduction for. If you are at risk of going over the cap of $27,500, talk to your employer – there is no upside in being over the cap.

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