Employers are advised to take note of their Superannuation Guarantee (‘SG’) obligations for the period of 1 January 2023 to 31 March 2023, which is due on or before 28 April 2023. Failure to pay the correct amount of SG by the due date may result in employers being liable to pay the SG charge, which includes a penalty and interest component.
Furthermore, employers are reminded that the compulsory SG rate has increased from 10% to 10.5% starting 1 July 2022. This rate will increase again to 11% for the period of 1 July 2023 to 30 June 2024. Employers are encouraged to ensure their payroll systems are updated accordingly by the start of the next income year to avoid any potential errors or complications.
It is essential for employers to comply with their SG obligations to ensure their employees receive the correct amount of superannuation entitlements. Employees may suffer significant financial losses if their employers fail to meet their SG obligations, which may lead to legal action against the employer. Employers must also keep accurate records of their superannuation contributions to avoid any issues with the Australian Taxation Office.
