Superannuation Guarantee Charge – What You Need to Know

The superannuation guarantee charge (SGC) rate will be increasing to 11% from 1 July 2023.  It will then continue to increase by 0.5% until July 2025 when it reaches 12%.  

Practical steps to consider for your business in the lead up to this change are:

1. Check whether your employee contracts are inclusive of superannuation or whether super is paid on top.

2. Where your employee contracts are inclusive of super, the extra 0.5% will be paid into superannuation which will decrease the net take home pay to the employee by the same amount.  This will not impact the overall payroll payment payable by your company for the year.

3. Where your employee contracts are exclusive of super, your employees will receive 0.5% more superannuation in their fund and their take home pay will remain unchanged.  This will increase the company’s payroll liabilities to fund the additional 0.5% super increase.

4. You need to discuss the super rate increase with your employees now so they understand the impact the increase will have on their personal payroll situation from 1 July 2023 .

5. Employers should be aware that late payment of super can incur large penalties – so plan now for the cashflow impact of higher payroll expenses from July. 

6. To obtain a tax deduction for FY2023 funds must have reached superannuation funds by the 30 June 2023.  Xero software requires superannuation payments made via their clearing house to be made by 2:00pm on 14 June to enable Xero to guarantee the funds will be received by the deadline date. 

If you are unsure how this change will affect your payroll costs and employee contractual arrangements, please contact us today so we can assist you to plan and prepare for these increases. 

Our CEO’s Top 5 Tips to Get EOFY Ready

The end of the financial year is just around the corner and in our latest video CEO Trish Catlin shares her top five essential tips to make sure your business is EOFY ready.  From analysing business performance to meeting with your tax agent, she offers comprehensive guidance to maximise your financial success.  

Watch the video here to optimise your strategies for the upcoming year.

If you need assistance getting EOFY ready, get in contact with our team on 1300 472 412.

Fun Facts

There are some pretty cool and interesting facts about tax?

Here are 6 surprising tax facts that you may not have known about!

CFO Anne-Maree’s Budgeting Tips

In this short video CFO Anne-Maree, shares her valuable insights and expertise on budgeting and the importance of regular reviews.  

A well-prepared budget is crucial because it serves as a road map for your business, allowing you to assess performance, identify gaps, and make informed decisions. 

Watch the video and learn how to start working on your budgets effectively. 

Need assistance along the way? Our team of experienced  

CFOs are always here to support you in achieving your business goals.

Meet Alex Georgiou – Square Penny Business Development Manager

Alex has only been with us a few months but he is already making a big impact at Square Penny.  He works closely with SMEs across various industries and business stages and takes the time to understand each client’s unique needs and what makes their business tick.    

What Alex loves most about his role is the opportunity to help clients with their financial pain points. He’s passionate in helping businesses overcome their common financial challenges like end-of-month reporting, financial packages, and cash flow forecasting. 

Watch the full video to learn more about Alex and how Square Penny can help your business succeed.