Are you prepared for the new superannuation rate?
From 1 July 2025, the Superannuation Guarantee (SG) rate will increase from 11.5% to 12%. If you run a small business and have employees, this change means you’ll need to pay a bit more into their superannuation funds. It’s a good time to make sure you’re across what this means and what you need to do.
Here’s a quick breakdown to help you stay on top of it:
1. The rate is going up
From 1st July 2025, the SG rate will officially be 12%. That means for every dollar your employee earns in ordinary time, 12 cents must go into their super. It might not seem like a big jump, but it can add up over time—especially if you have multiple people on your team.
2. Check your payroll
Make sure your payroll software or provider is ready to apply the new rate. Most modern systems will update automatically, but it’s worth double-checking. A quick review now can save you from a compliance headache later.
3. Penalties can sting
If you don’t pay the correct amount of super on time, the ATO may hit you with the Superannuation Guarantee Charge (SGC)—and it’s not just a slap on the wrist. It includes the unpaid super, interest and admin fees - and it’s not tax deductible. Better to avoid it altogether.
4. Plan ahead
Take a few minutes now to look at your budget and payroll processes. Factoring in the higher super rate can help you avoid surprises down the line. It’s also a good time to remind your team of the change, so everyone’s on the same page.
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Final Tip: Staying on top of your super obligations doesn’t have to be a hassle. A quick review and a little planning can help you keep things running smoothly—and keep your team happy too.
If you need advice or assistance, get in touch today, and follow us for more tips.
Disclaimer
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.
