Is your business ready for the increase to the super guarantee?
If you run a business and you employ staff, it’s important to be aware that an increase to the compulsory superannuation guarantee is scheduled for July 1 this year. This super payment is on top of each employee’s earnings, so the increase will be an additional cost to your business that you’ll need to budget.
How much is the super guarantee increasing by?
Currently, you have to pay 9.5% super for any employee you have who earns more than $450 per calendar month. This percentage will rise to 10% from July 1. It’s also scheduled to increase further in the coming years as indicated in the table below.
Date Super guarantee
1 July 2021 to 30 June 2022 10%
1 July 2022 to 30 June 2023 10.5%
1 July 2023 to 30 June 2024 11%
1 July 2024 to 30 June 2025 11.5%
1 July 2025 onwards 12%
The rationale for the increase is to boost the super balances of Australians so that there is less reliance on the age pension when people retire. Australia has an ageing population and the number of Australians reaching retirement age is steadily increasing.
Australians are also living longer due to medical advances. Both of these factors place an increasing burden on the age pension system and enhance the need for Australians to help fund their own retirement via superannuation.
How we can help
At Scorpion Bookkeeping, we can help you to implement Xero bookkeeping software to seamlessly manage your compulsory super guarantee payments and other business finances. We are a Xero-certified partner.
We can also provide your business with cost-effective bookkeeping support services. We service a diverse range of clients in Victoria, South Australia and New South Wales.
Contact us today for a free, no-obligation consultation to find out how we can help your business!