Superannuation changes 2023
It wasn’t really announced with the budget, but it is something in the background every year that Super Guarantee (Superannuation you pay on employee wages) is going to increase by 0.5% year on year until it reaches 12% in 2025.
This is important for small businesses as this affects how they plan for 2024FY and beyond. With out taking into consideration any wage increases you may have scheduled for the 2024 FY your total superannuation cost is going to go up by 0.5% to 11%, which if you only have a couple of employees might not be a big deal but if you have lots this can significantly impact your bottom line!
How does this take effect in my bookkeeping?
Xero and other software packages like this will update automatically for you in most cases however it is always a good idea to check the first couple of pay runs to ensure that they have calculated it correctly.
How do I plan for this in the future?
This is why have a robust financial budget/forecast is really important. You can build in increases like this into your forecast to assist you in making better decisions around hiring staff and other expenses going forward.
The other thing to consider is that with this increased cost what does that do to my margins and how do I best manage this either through potential price increase or reducing costs. Lots to consider.
