What you need to know about upcoming superannuation changes

28 May 2024
George Haros, Partner, Melbourne Diana Diaz, Special Counsel, Melbourne

With the new financial year upon us, employers should note some important changes to key superannuation caps, rates and obligations.

Increase to the superannuation guarantee contribution (SGC) rate

The SGC rate will increase from 11% to 11.5% on 1 July 2024. The rate will then continue to increase from 11.5% to 12% on 1 July 2025, where it is currently expected to remain.

PeriodSuperannuation Guarantee Rate
1 July 2023 – 30 June 202411%
1 July 2024 – 30 June 202511.5%
1 July 2025 and onwards12%

Superannuation contribution cap increases

The new financial year FY2024-25 will also see increases to superannuation contribution caps as follows:

Contribution TypeFY 2023-24FY 2024-25
Concessional Contribution Cap$27,500$30,000
Non-Concessional Contribution Cap$110,000$120,000

And don’t forget – superannuation obligations are now part of the National Employment Standards (NES)

From 1 January 2024, the Fair Work Act 2009 (Cth) was amended to include an obligation for employers to make superannuation contributions so as to avoid a superannuation guarantee charge.

Before this change, superannuation contribution obligations in superannuation legislation could be enforced by the Australian Taxation Office (ATO), and employees covered by modern awards and enterprise agreements that included superannuation terms could seek to enforce compliance with those terms.

Bringing the obligation into the NES widens the number of employees that can seek enforcement of the obligation, either directly or via an employee organisation or Fair Work Inspector.

Whilst the introduction of superannuation obligations in the NES is intended to streamline the process for employees wanting to enforce payment of unpaid contributions, claims cannot be made under the NES where the Australian Taxation Office has commenced proceedings to recover the unpaid contributions.

If you found this insight article useful and you would like to subscribe to Gadens’ updates, click here.

Authored by:

George Haros, Partner
Diana Diaz, Special Counsel
Luke Brusco, Paralegal

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

Get in touch