Superannuation rate increase
10/05/2024
With another super rate increase from 1 July 2024, make sure salary reviews are completed and your payroll is up to date.
From 1 July 2024, the superannuation guarantee (SG) rate will increase from 11% to 11.5%, increasing the compulsory superannuation payments employers make to their employees.
The 0.5% increment will continue on 1 July each year until it reaches 12% in 2025.
What employers need to do prior to 1 July 2024?
To avoid any negative impact to employees, complete salary reviews before 30 June 2024. Provided the business can support the cost and cashflow, this will ensure the pay increments at least cover the increase to the employee’s cash salary component.
Employees who are packaged on a gross salary plus super arrangement will have no impact on their take home salary. Although, employers need to factor in the additional wages cost for the superannuation increment of 0.5%. This will mean the total wages costs will increase for other on-costs such as payroll tax and WorkCover.
Maximum Contribution Base (MCB)
The MCB will increase to $65,070 per quarter.
MCB is used to determine the maximum limit on any employee’s earnings base for each quarter in the financial year. Employers are not required to make the minimum SG payment for the part of earnings above the MCB.
Concessional contributions
From 1 July 2024, the concessional contributions cap will increase from $27,500 to $30,000, allowing individuals to add more to their super accounts.
Non-concessional contributions
The non-concessional contributions cap will increase from $110,000 per year to $120,000. This change will also affect the bring-forward rule which will increase to up to $360,000 depending on your super balance.
What’s not changing
Superannuation contribution payment due dates remain the same at 28days after the end of each quarter.
The superannuation guarantee charge (SGC) will apply when employers do not pay the SG to their eligible employees’ nominated superannuation fund by the due date.
The contribution quarters are as follows:
| Quarter | Period |
| 1 | 1 July – 30 September |
| 2 | 1 October – 31 December |
| 3 | 1 January – 31 March |
| 4 | 1 April – 30 June |
How can SW help?
SW has an experienced outsourcing team to assist with your payroll function. We can assist employers understand and become familiar with the new requirements to make this change as easy as possible, while also ensuring employers are meeting compliance requirements.
We can support with :
- Your employment taxes need
- as a registered tax agent we can request your stapled super fund details for employees
- assist in budgeting for these increases.
