Employers: Superannuation Guarantee increase

picture of hand putting coin into a pink piggy bank with the text 'Superannuation Increase' to the right hand side of the piggy bank

Dear Employers, 

Get ready for a change that will not only benefit your employees but also contribute to the long-term success and growth of your organization. On 1 July 2023, the Superannuation Guarantee (SG) rate in Australia will increase from 10.5% to 11%. 

In this blog post, we will explore the upcoming increase in Superannuation Guarantee and its potential impact on your employees’ financial wellbeing and your business. 

picture of hand putting coin into a pink piggy bank with the text 'Superannuation Increase' to the right hand side of the piggy bank

What is Superannuation Guarantee?

The Superannuation Guarantee is a compulsory contribution system that requires employers to contribute a percentage of their employees’ earnings into designated superannuation funds. These contributions play a crucial role in building retirement savings, ensuring financial security for your employees in their post-work years. 

The proportion of wages employers must contribute to their workers’ superannuation is legislated to increase by half a per cent a year before reaching a final value of 12 % by 2025.

Considerations for Employers

While the increase in SG brings numerous advantages, there are some considerations for employers to keep in mind:

  1. Budget and Financial Planning: Adjusting your payroll expenses to accommodate the 0.5% increase may require careful budgeting and financial planning. Evaluate the financial impact on your business and ensure that you make necessary adjustments without compromising other aspects of your operations.

  2. Employee Communication and Education: Take the opportunity to communicate the upcoming changes to your employees. Offer educational resources or links to information to help them understand the benefits of the increased SG rate and make informed decisions regarding their superannuation.

Final Thoughts

As a forward-thinking employer, staying informed about superannuation changes and providing the necessary support to your employees will not only contribute to their financial security but also foster a thriving and dedicated workforce. Let’s seize this opportunity to build a brighter future for both your employees and your organization.

Disclaimer: The information provided in this blog post is general in nature and should not be considered as professional financial advice. Consult a qualified financial advisor before making any decisions based on this information. The author and publisher are not liable for any financial losses incurred.

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