1 July Superannuation Increase

As you may be aware, on 1 July 2023, there will be an increase in the compulsory contribution that an employer must make to an employee’s superannuation fund.  To ensure that you’re aware and across all the requirements for your business, keep reading!

The new minimum superannuation payment that employer’s will be required to make is 11 percent.

An important factor that employers will need to consider is whether an employee’s current agreement is inclusive or exclusive of superannuation.

To expand on this, if an employee’s current agreement sees them paid inclusive of superannuation, then this may mean a reduction in their take-home pay.  If an employee’s current agreement is exclusive of superannuation, then the employee will need to be paid 11 percent superannuation with no effect on their take-home-pay.

An employee who is paid at the minimum award rate cannot be paid any less than the rates stipulated in the relevant modern award.  Therefore, the superannuation contributions should not affect their take home pay.

It should be noted that salary sacrifice is not a viable option to meet Superannuation Guarantee obligations.

Luckily, these increases have been introduced gradually, as it gives businesses time to plan out these changes.

Contact HR Business Assist if you would like to find out more about what the requirements are around superannuation contributions for your business and what these changes mean.

HR Business Assist | 1300 138 551 | info@hrbusinessassist.com.au