Are you ready for the super guarantee rate increase?
The SG rate is gradually increasing, rising incrementally by 0.5% each financial year until it reaches 12% on 1 July 2025.
From 1 July 2023, the SG rate increases from 10.5% to 11%. This means that you’ll be required to increase the amount of money you contribute to your employees' super accounts. Failure to comply with this new rate can result in penalties and fines.
Make sure you give yourself enough time to update your payroll and accounting systems so that you continue to pay the correct amount of super for your employees.
When do I need to start paying my employees 11% SG?
The rate of SG you need to pay your employees depends on the date you pay them, not the dates they worked. If an employee is paid in July for work they completed in June, the rate is 11% because the payment date was on or after 1 July 2023.
- Your employee’s work was completed in July, but they were paid in June, therefore 10.5% SG applies.
- A pay period ends on 29 June 2023, but is paid on 1 July 2023, so 11% SG applies.
Have any questions?
At Spirit Super, we help you meet your super responsibilities quickly and easily, leaving you more time to run your business. For help with your super obligations, see How we support your business.