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 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 keep in mind that this is not a one-off increase. While the policy of the legislation is for the employer to contribute the extra half a per cent without impacting take-home wages, this may not be the case across all workplaces. Check with Carrick Aland for any clarification required about your business or sector.
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.
Payroll & Super – Happy Employees!
We’ll look after all pay runs for you and automatically send out payslips, keep you updated about your employee PAYG tax and super payable, and ensure that accrued annual leave and personal leave is correct.
We will fulfil all your requirements for Single Touch Payroll and Superannuation Guarantee. Read more at CAConnect or phone Carrick Aland in Dalby, Toowoomba or Chinchilla on 07 4669 9800.