In recent years, the superannuation guarantee (SG) has gradually increased by a set percentage.
This increment is part of a continuous rise toward reaching 12% gradually, predicted to be achieved by 2025. This gradual approach allows businesses ample time to strategies for the future, as they can manage small annual increases rather than facing a sudden jump.
Currently, employers must contribute the equivalent of 11% of ordinary time earnings for the 2023-24 financial year. This rate is stated to rise to 11.5% from 1 July 2024 for the 2024-25 financial year.
All full-time, part-time, or casual employees over 18 are eligible for super guarantee contributions (SGC). Additionally, employees under 18 and private domestic workers, such as nannies, who work more than 30 hours a week, are also eligible. In some cases, certain contractors may be considered eligible as well.
To ensure compliance with regulations and fairness to employees’ ordinary time earnings. The best way to avoid a super guarantee charge is to stay in line with the requirements of the super guarantee.
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The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.