On 1 July 2024, the superannuation guarantee statutory rate will rise from 11% to 11.50%. 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 make sure you apply the changes correctly. This change may also impact annualised salary arrangements.
- Calculate your revised payroll costs from July 2024, showing the current wages and superannuation expense compared to the new rate from July. Highlight the increased amount per month or quarter, so you know precisely what the impact on your business cashflow will be.
- 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 require assistance with reviewing and calculating the new payroll costs, talk to us now, and we’ll make sure you have accurate information to make planning for the superannuation guarantee rate rise easy.
Getting organised now means that you’ll be well prepared for your business’s increased costs when the first payment is due later this year.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.