Change is coming to superannuation and its operation in business with an increase in the superannuation guarantee rate to 12% from 1 July 2025. 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 2025
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 12% from 1 July 2025. This increase is the last of the scheduled increases.
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 11.5% to 1% 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).
Payday Super
Payday Super is another change coming to superannuation. This initiative is on the horizon and is in an active consultation phase now while the final shape and requriements are determined.
This change is coming, but does not come into effect until next year (1 July 2026).
For more information see; https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation
Superannuation Record Keeping Requirements
Remember Superannuation comes with particular record keeping requirements. See; https://acapmag.com.au/2024/06/record-keeping-requirements-part-6-superannuation/ for more.
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 employment@acapma.com.au its free for members.
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Elisha Radwanowski BCom(HRM &IR)
ACAPMA
