Get Ready for the July Superannuation Rate Increase

Take proactive steps to prepare for the upcoming rise in the superannuation guarantee statutory rate. Starting in July 2023, the rate will go up to 11% and will continue to increase by 0.5% annually until it reaches the mandated 12% in July 2025.

 

Here’s what you can do to stay ahead:

 

1. Assess your current superannuation expenses for all employees, including both hourly and salaried workers.
2. Evaluate any existing salary packaging agreements. Confirm whether superannuation is already included in the package or if it’s paid in addition to the agreed salary.
3. For salary packages that already include super, carefully review the contract language to ensure accurate implementation of the changes. These adjustments may also affect annualized salary arrangements.
4. Calculate your revised payroll costs from July, comparing the current wages and superannuation expenses with the new rate. Clearly highlight the increased amount per month or quarter to fully understand the impact.
5. Initiate discussions with your employees about the upcoming super rate increase. Inform them about the annual 0.5% increment until July 2025, when the statutory rate will reach 12% and remain constant.
6. Remember that underpaying or making late super payments can result in substantial penalties. Plan ahead to accommodate the higher payroll expenses from July to avoid any unpleasant surprises.
7. If you require assistance in reviewing payroll costs and employee agreements, reach out to us. We’ll ensure you have accurate reports that facilitate planning for the rate rise.

 

By getting organized now, you’ll be well-prepared to handle the increased costs for your business when the first payment is due later this year.