Super guarantee rate change scheduled

Get ready for a change in the super guarantee rate

The superannuation guarantee (SG) rate will increase from 10.5% to 11% on 1 July 2023.

Employers, remember to update your payroll system to align with these changes.

The new SG rate applies to payments made to workers on or after 1 July 2023.

The Superannuation Guarantee is a compulsory scheme that requires employers to provide a minimum level of superannuation support to their eligible employees.

Under this scheme, employers are required to make regular contributions to a complying superannuation fund or retirement savings account (RSA) on behalf of their employees. The current rate of SG contribution is set at 10.5% of an employee’s ordinary time earnings, with some exceptions for certain employees.

The aim of the SG scheme is to help save for retirement and reduce reliance on the age pension. It also helps to ensure that employees are provided with a level of superannuation support throughout their working life, regardless of their employer or industry.

It is important to note that the SG scheme is separate from any additional voluntary contributions that an employee may choose to make to their superannuation account.

Refer to the ATO’s Super Guarantee Percentage table here »

To discuss tax planning, payroll updates or to clarify the requirements around this topic please contact our team.

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