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An increase to the superannuation guarantee (SG) is set to go ahead from 1 July which will see the base rate rise from 9.5 per cent to 10 per cent, followed by incremental half percentage point increases each year to 12 per cent on 1 July 2025.
As small businesses, employers need to establish a plan to manage the SG increase early while being transparent with employees about how they plan on doing so. Is it already part of a salary package? What amount is the increase based on?
Many contract employees have total remuneration specified in their contract. Some may be contractors entitled to the SG contributions. Others covered by an award, enterprise agreement or minimum pay standards are unlikely to be affected.
To help manage the impact of the change, employers should have a discussion with their employees about what it means for them. If part of a salary package deal, it may come as a nasty surprise to those who do receive less take-home pay. Some employers have committed to absorbing the extra cost of the SG rate rise.
If you need help navigating this change or Need some solid advice? Don’t hesitate to reach out to us for a consultation. Get in touch and we’ll take it over from there!