The Super Guarantee Increase July 2023
As you already must be aware, this is just a quick reminder that from 1 July 2023, the standard Superannuation Guarantee rate will increase from 10.5% to 11 %. It’s part of the government’s commitment to increase the SG by half a per cent each year until 2025 when the SG rate will reach 12%.
If you are an employer:
If you run a business with employees, you should already be planning how this increase will be implemented and communicated to your employees. In most cases, the SG increase will not affect your employee’s base salary, as Superannuation Guarantee is paid in addition to your employee’s base income. If you have employees on a superannuation-inclusive salary package, their take-home cash payments will be affected by the Super Guarantee increase. To give an example an employee on a $50,000 salary package including super will currently have $5,250.00 going into their superannuation fund each year. When this increases to $5,500 from 1 July, their take-home pay will reduce by $269.91 per annum.
Contact us if you’d like assistance with planning for cash flow impact.
