On 1 July 2024, the super guarantee (SG) rate will increase from 11% to 11.5%. Some pay periods will cross over between June and July when the rate changes. 

The ATO advises that the percentage employers are required to apply is determined based on when the employee is paid, not when the income is earnt.

Employers will be required to review their employees’ arrangements as well as their payroll software. Most payroll software providers will automatically update their platform to reflect the increase for wages paid from 1 July 2024.

For employees on a superannuation-inclusive salary package, the SG increase will affect their take-home pay.

For employees on a base salary or wage, the SG increase will not impact their take home pay, rather it will be a pay increase of 0.5%.

Please ensure you consider the above legislative change and communicate the impact to your employees.  

If you have any queries or wish to discuss, please do not hesitate to contact our office.