Super and Award Increases July 1st

As the start of the new financial year rolls around, those employing staff and hiring eligible contractors need to be aware that Super Guarantee and Award Wages are increasing as of July 1st.

Super Guarantee

If you have employees, or hire eligible contractors, you’ll need to ensure your payroll and accounting systems are updated to reflect the new super guarantee (SG) rate of 11% for payments of salary and wages you make from 1 July.

You need to calculate super contributions at 11% for your eligible workers for payments of salary and wages you make from this date. Your super contributions for the quarter ending 30 June, due by 28 July 2023 are still calculated at the 10.5% rate for payments of salary and wages made prior to 1 July.

If you need help to work out how much super you need to pay for your employees and eligible contractors after 1 July, you can use the ATO’s super guarantee contributions calculator. The SG rate is scheduled to progressively increase to 12% by July 2025.

Award Wages

There are 121 modern awards which apply to employees in the national industrial relations system in various industries and occupations. Each modern award sets minimum wage rates for employees working in the industry, occupations or enterprises covered by the award.

In early June, the Fair Work Commission decided that award rates of pay will be increased by 5.75 per cent effective from 1 July 2023. So if you’re employing and paying your employees anyone based off the award wages, check the updated info on your respective award at the Fair Work Commission.

If you haven’t already, make sure your payroll officer is well aware before the next pay-cycle comes round. If you need any help or clarification of payroll compliance or the super,  don’t hesitate to get in touch with us at STS Accounting.