A key requirement of Australian employers includes having to pay superannuation contributions at a given percentage rate of an employee’s ordinary time earnings. This is known as the Superannuation Guarantee (SG) and is currently paid quarterly on behalf of employees into their superfunds. The ATO specifies that this applies to full-time, part-time or casual workers.
The percentage is set by the Australian Government and changes over time. It’s important for employers to be aware that the SG rate will increase from the current 10.5% to 11% on 1 July 2023. This is fast approaching!
Also noteworthy, is that the SG percentage rate will continue increasing by 0.5% every year until it reaches 12% from 1 July 2025, as seen in the table below:
| Period | Super Guarantee Rate |
| 1 July 2022 – 30 June 2023 | 10.50% |
| 1 July 2023 – 30 June 2024 | 11% |
| 1 July 2024 – 30 June 2025 | 11.50% |
| 1 July 2025 – 30 June 2026 | 12.00% |
If the required rate of SG is not paid into their employee’s correct superfunds on or before the quarterly due dates, employers can face a super guarantee charge (SGC). The SGC includes all the respective super guarantee amounts owing to their employees, plus interest and an administration fee.
Therefore, with the new SG rate of 11% applying to payments made to employees on or after 1 July 2023, it is especially important for employers to remember to check and update their payroll systems to ensure compliance with this increase and avoid any SGC. Employers should also make note of the quarterly payment dates set out in the table below:
| Quarter | Period | Payment 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 |
Please feel free to contact our office for more information on this matter.
