Did you know from 1st July 2023 there will be a change to Superannuation payments in Australia?
Changes To Superannuation
Eligible Employers who pay super to full-time and part-time employees (incl. casual employees), will need to increase super contributions for the financial year of 2023–2024, from 10.5% to 11% as of the 1st July. Employers will need to remember to update their payroll systems to adhere these changes.
Will There be Further Increases?
The short answer is yes. This current increase is a component of an overall strategy to boost the superannuation guarantee rates to 12% by July 1, 2025-26. The below table is from the Australian Taxation Office (ATO) and outlines what to expect in the coming financial years:
|Period||General Super Guarantee (%)|
|1 July 2022 – 30 June 2023||10.50|
|1 July 2023 – 30 June 2024||11.00|
|1 July 2024 – 30 June 2025||11.50|
|1 July 2025 – 30 June 2026||12.00|
|1 July 2026 – 30 June 2027||12.00|
|1 July 2027 – 30 June 2028 and onwards||12.00|
Other Changes To Be Aware Of
- Employees’ super will have to be paid with their salaries and wages starting in July 2026. Through these changes, the ATO will be able to monitor compliance and address the $5 billion annual scourge of unpaid super. In addition, workers will be able to keep track of their payments easier.
- The Government announced $40 million in funding for the ATO to better enforce super compliance and stronger targets for the ATO’s recovery of unpaid super amounts.
- For more information about these changes and more from the Federal Budget that may affect your business, please review: https://budget.gov.au/
When recruiting new employees, it is important to be aware of these changes. The Recruitment Alternative endeavours to stay up to date on changes occurring in this space due to the impacts on recruitment. Are looking to recruit top talent at an affordable price? If the answer is yes, then please contact The Recruitment Alternative today on 1300 548 546 or via our contact us page. We will be able to work with you to achieve your recruitment goals and find a suitable candidate for your small business at a low-cost price.