Superannuation Rate Increase

From the 1st of July 2023, there will be an increase in the superannuation guarantee rate in Australia. The rate will rise from the current 10.5% to 11% of ordinary-time earnings. This means that employers will need to ensure that the correct superannuation contributions are made for their employees under the new rate.

Superannuation Rate Increase

Failing to comply with the new rate may result in penalties or legal consequences. Our accounting and bookkeeping experts are available to assist you in understanding and implementing the changes effectively.

We recommend checking your software to ensure that the rate has been increased.

Reminder regarding payment of Superannuation

If an audit is requested by the ATO for late payment, superannuation will also be payable on earnings usually excluded from the initial super guarantee calculation, such as overtime. This can result in substantially high amounts being payable, which can cause hardship to your business.

Any late payment of superannuation will mean the expense, together with the interest and administration fees will be non-deductible, meaning there will be no tax deduction for these amounts.

Your employee’s super contribution is only considered ‘paid’ on the date it’s received by their superannuation fund.

If you are using a clearing house, payments made to the clearing house that are not processed, or do not reach the superannuation fund until after the payment due date, are considered late payments.

Processing times vary between clearing houses therefore we recommend paying your superannuation obligations within the first week, after the quarter ends.

How can we help?

At Rawson Verco Need, we are committed to supporting your business in adapting to regulatory changes and achieving compliance. Please feel free to reach out to us should you have any questions or concerns regarding the upcoming superannuation rate increase.

Please refer to the ATO for additional information.