The next quarterly due date for SG contributions is fast approaching, and there are some critical updates you need to be aware of.

Key Dates and Payment Instructions

The due date for the next quarterly SG contributions is 28 July. However, since this date falls on a weekend, the super fund must receive your payment by Monday, 29 July. It is crucial to pay in full, on time, and to the correct fund to avoid any penalties.

Consequences of Late Payments

If you do not pay your SG contributions by the due date each quarter, you will be required to pay the Superannuation Guarantee Charge (SGC). The SGC is more than the SG contribution amount, and unlike regular SG contributions, it is not tax-deductible. To avoid this costly charge, ensure that your payments are made promptly.

SG Rate Increase Effective 1 July

The SG rate has increased to 11.5% as of 1 July 2024. Any payments made for eligible workers on or after 1 July must reflect the new rate. For the quarter ending 30 June 2024, the previous SG rate of 11% applied to payments made before 1 July.

Progressive Increase to 12%

It is important to note that the SG rate will continue to increase progressively, reaching 12% by July 2025. Staying updated on these changes and adjusting your payments will help you remain compliant and avoid unexpected liabilities.

How to Calculate the Correct SG Payment

Determining the correct SG payment can sometimes be challenging, especially with the rate changes. If you need assistance calculating the appropriate superannuation amounts for your employees and eligible contractors, please do not hesitate to speak with your registered tax professional. We are here to help you navigate these changes and ensure you meet all your SG obligations accurately.

In Summary

• Due Date: 29 July (as 28 July falls on a weekend)
• New SG Rate: 11.5% effective from 1 July
• Previous SG Rate: 11% for payments before 1 July
• SGC: Payable if contributions are late, and it is not tax-deductible
• Future Increase: SG rate to reach 12% by July 2025

By staying informed and proactive, you can ensure that your business remains compliant with superannuation requirements and avoids any unnecessary penalties.

We are here to help you manage your superannuation obligations effectively. If you have any questions or need further assistance, speak with one of our trusted team.