The super guarantee rate has increased to 11 per cent from July 1, 2023, prompting businesses to ensure their payroll and accounting systems are up to date.

The Australian Taxation Office (ATO) recently announced the change, which means businesses that have employees or hire eligible contractors will need to calculate super contributions at 11 per cent from the new financial year.

Super contributions for the quarter ended June 30, 2023, are due by July 28, 2023, and are still calculated at the 10.5 per cent rate for payments of salary and wages made prior to July 1, 2023.

The super guarantee will incrementally increase to 12 per cent by July 2025, per the following schedule:

Avoid penalties

If businesses do not pay the required super guarantee rate into their employee’s correct super funds by the quarterly due dates, they will face a super guarantee charge. The charge includes the respective super guarantee amounts owing to employees, as well as interest and an administration fee.

As such, it is important for businesses to check that their payroll and accounting systems are reviewed and updated to ensure compliance with this increase and to avoid any charges.

Businesses that need help with calculating how much supernation they need to pay for their employees and eligible contractors after July 1 can use the ATO’s super guarantee contributions calculator, or they can speak to a tax adviser at LDB Group.

Speak to the tax and superannuation experts

Do you need help navigating the super guarantee rate increase? Do you want to ensure your business accounting is compliant?

LDB Group’s tax and superannuation specialists can guide you. Simply get in touch by calling (03) 9875 2900 or sending us details via the contact form below.