Change is coming to superannuation and its operation in business with an increase in the superannuation guarantee rate to 11.5% from 1 July 2024.  Now is the time for all businesses to understand what is changing and what they need to do to remain compliant.

New SG Rate from 1 July 2024

As outlined in the Superannuation Guarantee (Administration)Act 1992 (Cth) and brought into effect with the 2021 Budget,  superannuation guarantee (SG) rate increased from 9.5% to 10% from 1 July 2021.  The rate is now in the incremental increase stage where the rate is increasing 0.5% per year with the rate to rise to 11.5% from 1 July 2024.  The increases are currently set to cease when the superannuation rate reaches 12% on 1 July 2025.

Where staff are employed on a ‘salary plus super’ basis the change is a simple one to make, the business just has to go into the payroll system and change the superannuation % from 11.0% to 11.5% and communicate to the employee the change (this can be done as a separate letter or as part of the annual Confirmation of Employment process).

Here to Help

HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation reaching out to ACAPMA Employment Professionals via  its free for members.

Click here to apply for ACAPMA membership.

Elisha Radwanowski BCom(HRM &IR)