Superannuation Rate Rises in July to 11.5%
Superannuation Rate Rises in July to 11.5%
In July 2024, the superannuation guarantee statutory rate rises to 11.5%. Annually, the rate is increasing by 0.5% until July 2025, when it will reach the legislated 12%.
Prepare Now for the July Rate Rise
- Review your current superannuation costs for all employees, both hourly and salaried.
- Review any salary packaging arrangements. Is the agreement inclusive of superannuation, or is super paid on top of the agreed salary?
- For salary packages inclusive of super, you will need to check the contract’s wording to ensure you apply the changes correctly. This change may also impact annualised salary arrangements.
- Calculate your revised payroll costs from July. Show the current wages and superannuation expenses compared to the new rate from July. Highlight the increased amount per month or quarter so you know precisely the impact.
- Discuss the super rate increase with your employees now. Let them know that there will be an increase of 0.5% each year from now until July 2025. When the statutory rate will reach 12% and remain there.
- Remember – short payment or late payment of super can incur hefty penalties – plan now for higher payroll expenses from July so you don’t get caught short.
If you’d like help reviewing payroll costs and employee agreements, talk to us now, and we’ll make sure you have accurate reports to make planning for the rate rise easy.
Getting organised now, before the superannuation guarantee statutory rate rises, means you’ll be well prepared for your business’s increased costs when the first payment is due later this year.