This is a reminder about an important upcoming change to your payroll obligations. From 1 July 2025, the compulsory superannuation guarantee rate will increase to 12%.
For your business, this means ensuring your payroll system is updated to calculate super at the new rate before your first pay run of the new financial year. While many software platforms automate this, it’s crucial to personally verify the change has been applied correctly to avoid any accidental underpayments to your team.
The financial impact goes beyond the simple 0.5% increase in your wage expenses. Paying the incorrect amount, even by mistake, can lead to the Superannuation Guarantee Charge from the ATO. This charge includes the shortfall, interest, and administration fees, and unlike normal super contributions, it is not tax-deductible, making it a costly oversight.
Getting this right is vital for compliance and protecting your business’s cash flow. If you have any concerns about navigating this change or simply want peace of mind that your systems are correctly prepared, please feel free to reach out for an obligation-free conversation.
Our team is here to support you and your business in many different ways, give us a call on 1800 668 225 or reply to this email by clicking here to ask us any questions.
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