Prepare for SG Rate 12% Increase: Effective Compliance Tips
The upcoming rise in the super guarantee (SG) rate to 12% will affect every business with eligible employees. This is the final scheduled increase, and it applies to all salary and wages paid on or after 1 July 2025—even if part of the pay period falls in June. Preparing now ensures you remain compliant and avoid costly penalties.
What Business Owners Need to Know
From 1 July 2025:
- SG rate increases to 12% for all eligible employees.
- The new rate applies even when the pay period covers days before July.
- The next quarterly SG contribution due date is 28 July 2025.
- SG rate increases to 12% for all eligible employees.
Important compliance points:
- SG contributions must be paid at least quarterly, but paying more frequently can improve cash flow management and reduce last-minute stress.
- Deductions are available only when the contributions are actually paid.
- Missing the due date triggers the Superannuation Guarantee Charge (SGC), which removes any ability to deduct these amounts and can add interest and penalties.
- SG contributions must be paid at least quarterly, but paying more frequently can improve cash flow management and reduce last-minute stress.
Expert Perspective: Why Timely Action Matters
At Aero Accounting Group, we regularly see businesses caught off guard when changes like this take effect. One client in the hospitality industry once underestimated the impact of a rate change and left payments until the last day. A minor payroll delay pushed the payment into the next month, resulting in SGC penalties and a missed deduction.
By scheduling payments ahead of deadlines and adjusting payroll systems early, these issues can be avoided. Even small delays can turn an otherwise simple compliance step into a costly problem.
Action Steps to Prepare Now
- Review Payroll Systems
Ensure your payroll software is updated to apply the 12% rate from 1 July, even if the pay period starts before that date. - Plan Payment Schedules
Set reminders well before the 28 July deadline. Consider monthly SG payments to smooth out cash flow. - Communicate with Your Team
If you manage payroll internally, make sure everyone is aware of the change and understands the importance of on-time payments. - Seek Expert Guidance
Work with an accounting advisor to ensure accuracy in calculations, compliance with deadlines, and full eligibility for deductions.
- Review Payroll Systems
Why This Change Is a Strategic Opportunity
While the SG rate increase is a legal obligation, it also sends a positive message to employees about long-term security. Demonstrating that you prioritise their future can improve retention and workplace satisfaction. Well-handled compliance can also strengthen your business’s professional reputation.
Partner with Aero Accounting Group for a Smooth Transition
The 12% SG rate is coming, and the best time to prepare is now. Aero Accounting Group can help you update payroll processes, set up effective payment schedules, and ensure you never miss a deadline. Our team works closely with business owners to make compliance simple and stress-free.
Book your consultation today and take the right steps to meet the 1 July changes with confidence.
Need help?
Not sure if your current accountant is a good long-term fit? Contact us at Aero Accounting Group today and we’ll help you minimise your taxes and maximise your profits
