17 JunEmployers: superannuation guarantee percentage will increase to 11.5% on 1 July 2024
The superannuation guarantee (SG) rate will be increased from 11% to 11.5% on 1 July 2024.
This change means that employers must contribute a higher percentage of their employees’ earnings to their superannuation funds. The aim is to help Australian workers save more for retirement and enhance their financial security in later years. It’s part of a legal requirement to raise the superannuation guarantee rate to 12 per cent by 1 July 2025.
As an employer, you must pay eligible employees a super guarantee (SG) at least four times a year. If you fail to pay the required SG amount by the quarterly due date, you will be obligated to pay the super guarantee charge.
Some important reminders:
- the super guarantee should be paid to all workers, regardless of their monthly earnings (the $450 threshold no longer applies)
- for employees 18 years or older, the super guarantee should be paid regardless of their work hours
- when paid on time, the minimum contribution is calculated based on the employee’s ordinary time earnings (OTE). OTE is the amount paid to employees for their ordinary work hours
- superannuation is paid on top of the minimum hourly rate specified in an award or agreement.
For more information, you can visit:
- for an overview of the planned increases to superannuation until 2025: Super guarantee | Australian Taxation Office (ato.gov.au)
- you can also use this tool to calculate your employee’s superannuation: Superannuation guarantee contributions calculator | Australian Taxation Office.
