As legislated by the Australian Federal Government, the Superannuation Guarantee (SG) rate will be increasing to 12% on 1 July 2024, the second to last proposed increase in a series of 0.5% increases since 2021.
With the cost of living crisis affecting budgets nationwide, it is even more important to inform employees of the rate change well in advance of July, as well as in a few cases, any potential changes to their take-home pay. Speak to your trusted business advisor about how to best manage this process and start having these conversations as early as possible.
These changes can create additional work for payroll staff and incur financial impacts for employers, so preparation is vital. However, from Sybiz Visipay version 23.10 onwards, updating bulk superannuation rates has become much faster with the new Staff Type import facility.
To update Superannuation rates in Sybiz Visipay
In Sybiz Visipay select Utilities > Export > Employee Data
and select to Export From: Staff Types and step through the wizard. Make the relevant changes and save the changes.
To update the superannuation settings for the staff types, select Utilities > Import > Employee Data
and select to Import To: Staff Types and step through the wizard. You will need to make the change after you have completed processing in 2023/24 and prior to processing your first pay in the 2024/25 financial year.
If you are on a version prior to 23.10 we recommend upgrading to the latest version before the 2024/25 new financial year. In rare cases where this is not possible, instructions for older versions can be found on our website.
The ATO have not advised of any grace period for employers to comply with the new SG obligations and have indicated that employers who do not meet the requirements on time may have to pay them a Superannuation Guarantee Charge (SGC) to rectify any mistakes. This charge is made up of SG amounts owing to their employees, plus interest and ATO administration fees.
Employers who do not make the correct SG payments to the correct super fund will need to report and rectify missed payments through an SG statement to the ATO, so it is important to manage this change effectively and on time. If you are experiencing any difficulty, please contact your Sybiz Authorised Business Partner for assistance.
The financial years and corresponding superannuation guarantee rates are listed in the table below.
|1 July 2014 – 30 June 2021
|1 July 2021 – 30 June 2022
|1 July 2022 – 30 June 2023
|1 July 2023 – 30 June 2024
|1 July 2024 – 30 June 2025
|1 July 2025 – 30 June 2026