SG base rate rise set from 1 July which will increase from 9.5% to 10%
Employers should turn their attention to managing the superannuation guarantee (SG) increase which comes into effect on 1 July.
An SG base rate rise is set from 1 July which will increase from 9.5% to 10%, followed by incremental half percentage point increases each year to 12% on 1 July 2025.
Businesses should establish an approach strategy to the increase now because non-payment, underpayment or late payments of the new rate are likely to attract ATO attention.
Regardless of how a business approaches the change, it should be done with transparency that clearly communicates how employees’ payslips will be impacted.
Employers should also review their employees’ contractual and award arrangements to ensure their strategy to the payment increase is in accordance with their legal obligations. Please contact Allan Hall HR on 1300 675 393 or [email protected] if you would like assistance in reviewing or interpreting your current employment arrangements.
Contributions for each employee are required to be paid on at least a quarterly basis. Employers are urged to brace for the SG increase on 1 July by provisioning for payroll changes via business activities that sustain cash flow.
Do note that software providers will be making the adjustment to their systems but, depending on your setup if you have manually entered a rate you may need to adjust this.