Keeping up with superannuation obligations is crucial for every Australian employer. With the Superannuation Guarantee (SG) rate steadily increasing, it’s important to understand how these changes will affect your payroll, budgeting, and overall compliance.
Why the SG Rate Matters
Each financial year, the SG rate determines the minimum percentage of an employee’s earnings that must be contributed to their super fund. The Australian Government has implemented incremental increases to help Australians save for retirement, meaning employers should plan ahead for rising super contributions.
Below is a clear breakdown of the SG rate changes:
| Financial year | SG rate |
|---|---|
| July 2014-June 2021 | 9.50% |
| 2021-22 | 10.00% |
| 2022-23 | 10.50% |
| 2023-24 | 11.00% |
| 2024-25 | 11.50% |
| From 1 July 2025 | 12.00% |
Super Contribution Compliance Deadlines
Employers are typically required to pay super contributions at least quarterly, according to the schedule below. Missing these deadlines can lead to penalties, so be sure to mark them on your calendar.
| Quarter | Period | Payment Due Date |
|---|---|---|
| 1 | 1 July – 30 September | 28 October |
| 2 | 1 October – 31 December | 28 January |
| 3 | 1 January – 31 March | 28 April |
| 4 | 1 April – 30 June | 28 July |
ATO Guidance on Due Dates
- Some super funds, awards, or contracts may require contributions more frequently than quarterly.
- Meeting the SG payment dates does not automatically mean you’re meeting other specific obligations set by funds, awards, or contracts.
- Always check your contractual obligations to ensure payments are made on time.
How These Changes Affect Your Business
- Budgeting and Payroll: As the SG rate increases, your total payroll expenses will rise. Factoring these increments into your financial planning and cash flow projections is essential.
- Compliance Obligations: Late or missed payments can attract penalties. Staying on top of each quarter’s due date will help you avoid additional costs or compliance issues.
- Impact on Wage Agreements: Some businesses adjust remuneration packages to accommodate super increases. Reviewing employment contracts early can prevent surprises.
How Fletcher Tax Accountants Can Help
At Fletcher Tax Accountants, we specialise in ensuring your business remains compliant with superannuation rules while minimising financial strain. Our team can:
- Review your payroll processes and help automate super contributions
- Provide guidance on budgeting for increasing SG rates
- Offer tailored advice on managing employee remuneration packages
Take Action Today
Need help staying on top of your super obligations? Contact Fletcher Tax Accountants at (02) 9880 7892 or schedule a consultation via Contact Us. Our personalised approach ensures you navigate each SG rate increase smoothly and secure the best outcomes for your business and your employees.
Disclaimer: This information is provided as a general guide only and does not constitute financial advice. For specific advice tailored to your situation, please consult our Office.