super changes

Get Ready for Super Changes coming 1st July 2023

In the lead up to the end of financial year and especially when employers maybe considering pay rises for their employees, we thought we’d give you a friendly reminder that the SGC Super rate is legislated to increase by 0.5% per year per the table below. So, from the first pay day on or after 1 July 2023, the SGC super contribution rate is increasing from 10.5% to 11%. When the time comes payroll software, like Xero, should automatically update for you but if you have any employees who salary sacrifice super to top up their contributions to the maximum $27,500 pa then they will need to adjust their salary sacrifice amount accordingly.

PeriodSuper Guarantee (%)
1 July 2020 – 30 June 20219.50
1 July 2021 – 30 June 202210.00
1 July 2022 – 30 June 202310.50
1 July 2023 – 30 June 202411.00
1 July 2024 – 30 June 202511.50
1 July 2025 – 30 June 2026+12.00

Other year end Super issues:

We’d also like to take this opportunity to remind employers SGC Super for the June Quarter must be paid by 28 July 2023 but to be deductible in your 2023 tax return that superannuation must be paid AND received by the Superannuation Fund before 30 June. Because of time delays between payment dates, processing through the Clearing Houses and receipt by the super fund, we strongly recommend that super payments for June are made as early as possible – preferably before the 15th to ensure they are processed in time.

Please be also be aware, that if you have any employees who salary sacrifice super to top up their contributions to $27,500 pa, they may get upset if their June Super payment is not processed until July as it will then count towards their 2024 contributions instead (i.e. they can’t catch up).

It might also be a good idea to double check the total super contributions paid for your employees to make sure that they aren’t on track for exceeding the $27,500 total contribution cap before the end of the year as they will incur a Excess Superannuation Contribution Charge if they go over.

Please contact one of our accountants for more information if needed.

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