Australia, Federal Budget 2023-2024 – Superannuation

26 October 2023 | News

The main focus of the 2023-24 Federal Budget is on measures that address cost of living pressures for households in light of high inflation and ongoing economic and geopolitical uncertainty.

While a wide range of measures were announced by the Treasurer, here’s a summary of the points specific to superannuation.

The Government will introduce legislation requiring employers to pay super on payday from 1 July 2026.

Currently employers are required to pay the Super Guarantee on at least a quarterly basis.

This timing will be changed so employers will be required to pay superannuation on the same day as payday.

Employers in Australia pay salary and wages in a range of frequencies, such as weekly, fortnightly and monthly – and the super guarantee payments that correspond with that pay period will need to be made on the same day as the pay from 1 July 2026.

Changes to the design of the Super Guarantee charge will also be necessary to align with increased payment frequency.

The Government will consult with relevant stakeholders on the design of these changes, with the final design to be considered as part of the 2024–25 Budget.

Proposed start date: 1 July 2026

Although not announced as part of this year’s Federal Budget, it’s important for employers to note that the superannuation guarantee (SG) rate has increased to 11% from 1 July 2023.

The new SG rate applies to payments made to workers on or after 1 July 2023. This rate will increase by 0.5% each year until it reaches 12% in 2025.

Super guarantee percentage:

1 July 2023 – 30 June 2024 11%
1 July 2024 – 30 June 2025 11.5%
1 July 2025 – 30 June 2026 12%

Details can be found on the Australian Taxation Office website.