Get ready all you employers because there’s a superannuation guarantee rate hike coming our way in July 2023. The statutory rate will jump to 11% and it’s set to increase by 0.5% annually until it hits a solid 12% in July 2025.
But hey, no need to panic! Let’s prepare ourselves for this rate rise like pros:
Step 1: Take a peek at your current superannuation costs for all your employees, whether they’re paid hourly or have a fixed salary.
Step 2: Check your salary packaging arrangements. Is superannuation included in the agreement, or is it paid on top of the agreed salary? You’ll need to review the wording in your contracts and make sure you apply the changes correctly. This change might also affect any annualised salary arrangements you have.
Step 3: Time to crunch some numbers! Calculate your revised payroll costs starting from July. Compare the current wages and superannuation expenses to the new rate. Highlight the increased amount per month or quarter, so you know exactly how it’ll impact your bottom line.
Step 4: Talk to your employees about the super rate increase. Give them a heads-up that there will be a 0.5% increase each year until July 2025 when the rate settles at 12%. Keep them in the loop!
And remember, don’t mess around with super payments. Short or late payments can result in hefty penalties. So plan ahead, get your ducks in a row, and be prepared for higher payroll expenses starting in July.
If you need a hand reviewing your payroll costs and employee agreements, reach out to us now, and we’ll provide accurate reports to make your rate rise planning a breeze.