KEEPING UP TO DATE

Happy HR New Year – tips for your business – superannuation changes

Superannuation contributions will increase from 10.5% to 11% effective July 1, 2023.

There will continue to be 0.5% increases each July until 2025 when the superannuation guarantee reaches 12%.

Salaries and wages are either paid inclusive or exclusive of superannuation. You can check which one your business uses by looking at your employment agreements.

If you pay a super-inclusive package, you have the option of adjusting the amount of superannuation you pay your team while keeping their total package the same. You must ensure you are correctly adjusting amount of superannuation being paid into each employee’s superannuation fund to 11% and you will need to communicate with your team what they will receive as their take-home pay.

If you pay your team an exclusive of superannuation package, you’ll need to increase the superannuation paid to employees to 11% as of the 1^st July 2023.

Remember that if you have employees who contribute to their superannuation pre-tax you’ll need to remind them of the potential to claim a deduction. You can find out more about claiming deductions for personal super contributions here.