The 12% Superannuation Rate Change and Why Your Business Needs to Act NOW.
- Marketing Manager
- 6 days ago
- 2 min read
How one quiet change could cost or save your business thousands.
It was a normal payroll Friday until Lisa, a small business owner, got an unexpected message from her bookkeeper:
“Hey, have we adjusted for the new 12% super rate yet?”
Cue the panic. Lisa had 8 employees, weekly payroll, and no idea this change was even happening.
Sound familiar?
From 1 July 2025, Australia’s Superannuation Guarantee (SG) rate increases from 11.5% to 12%. For many businesses, it’ll feel like a 0.5% rise in wages—without the productivity bump to go with it.
But here’s the thing: this shift isn’t just about compliance. It’s a golden opportunity to show your team you're on top of their future… and a moment to tighten up your payroll game before it catches up with you.
Why It’s Changing: The Bigger Super Picture
The increase is part of a long-term government plan to improve retirement outcomes. Each year since 2021, the SG rate has risen by 0.5%, leading us to this final stop: 12%.
While some see it as a burden,
others see it as a call to modernise streamline payroll systems, boost team morale, and avoid the hefty penalties of underpaying super.
What Happens If You Don’t Update It?
Let’s be real:
ATO penalties for late or incorrect super payments can be brutal and they’re not tax deductible. If you’re still manually adjusting spreadsheets or relying on outdated payroll tools, this change could cost you more than just money.
3 Smart Moves to Get Ahead (Without Losing Sleep)
1. Review Your Employment Contracts
Does the salary include super (“total package”) or is super on top?
This determines whether you need to increase total pay or adjust the breakdown.
2. Automate Payroll Adjustments
Use payroll software like Xero, MYOB, or QuickBooks.
These updates can often be automated—saving you hours and reducing human error.
3. Communicate With Your Team
Don’t wait for questions—get ahead of the confusion.
A short note to employees builds trust and transparency.
Pro tip: If you outsource payroll or bookkeeping, send them a reminder now. July creeps up fast.
Real Example: How Much More Will It Cost?
Let’s say you employ 5 staff, each earning $70,000/year.
At 11.5%, your annual super cost:
5 Employees x $70,000 x 11.5% = $40,250
Total Super Cost = $38,500 per year for all employees
At 12%, your annual super cost:
5 Employees x $70,000 x 12% = $42,000
Difference = $1,750 extra per year
That’s almost another staff member’s monthly wage—unaccounted for if you're not budgeting ahead.
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Turn This Into a Win
Instead of seeing this as an expense, use it as a moment to:
Review your hiring strategy
Fine-tune your cash flow
Get your accounting in shape before tax season hits
Your team will notice. So will your future self.
Share the Knowledge, Save a Mate
Already got your system in place? Great. But many business owners are still unaware or unprepared.
Share this with a mate or colleague it could save them a big compliance headache (and boost your reputation as the savvy one in the group).
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