The superannuation guarantee rate has increased again as part of the scheduled increments continuing through 2025. Effective from 1 July 2024, the rate is now 11.5% for the 2024-25 financial year.
These incremental increases offer businesses a manageable framework, allowing for gradual adjustments and continual strategising of their payroll and compliance management.
SUPERANNUATION GUARANTEE CONTRIBUTIONS (SGC) OBLIGATIONS
Businesses must understand their obligations under the superannuation guarantee (SGC). Employers must contribute to the superannuation funds of all eligible employees, including full-time, part-time, and casual
workers over 18. Individuals under 18 and private domestic workers, such as nannies, who work more than 30 hours a week, are also entitled to SGC. Certain contractors may also be eligible for superannuation
contributions. Compliance with superannuation regulations goes beyond just knowing who is eligible. Employers must accurately calculate superannuation contributions based on employees’ ordinary time earnings. Failing to comply can result in a super guarantee charge, emphasising the need for diligent payroll management.
SEEKING GUIDANCE FOR EFFECTIVE MANAGEMENT
For businesses facing the complexities of payroll and regulatory changes, seeking guidance from trusted advisors is essential. An experienced partner can provide expert support, helping businesses stay informed about regulatory updates and implement effective payroll management strategies. As the superannuation landscape continues to change, businesses must adopt a strategic approach to manage these adjustments effectively. Proactive planning, meticulous compliance, and seeking guidance from trusted advisors will position businesses for success in navigating the evolving world of superannuation.
By embracing these strategies, businesses can ensure they meet their obligations while supporting their employees’ future financial security. Need assistance? Speak with a trusted, licensed advisor.