Changes from July 2024: Superannuation, Award Rates, and Tax Updates

As we dive into the new financial year, it’s important for businesses to stay on top of the latest changes from July 2024 to wage and tax rates. At Trendsight, we’re here to guide you through these changes with ease.

Let’s take a look at some key updates: the increase in superannuation, changes in award rates, and new tax tables. 

Superannuation Rate Increase to 11.5%

From 1 July 2024, the superannuation guarantee (SG) rate will increase from 11% to 11.5%. This means that as an employer, you are required to contribute 11.5% of an employee’s ordinary time earnings to their super fund. This change is part of the government’s ongoing efforts to ensure Australians have adequate savings for retirement.

For businesses, this increase means adjusting your payroll systems to accommodate the higher rate. You will also need to consider the wording of your staff contracts (base salary inclusive or exclusive of super) as this will determine whether the additional 0.5% will be passed on or is included as part of their salary.

Ensure you discuss this with your bookkeeping team so they can help you navigate these changes seamlessly, ensuring your payroll is accurate and compliant.

For more information, you can refer to the Australian Taxation Office (ATO) website.

Increase in Award Rates

Another significant change from 1 July 2024 is the increase in award rates. The Fair Work Commission has announced an increase in minimum wages of 3.75% as part of their annual wage review. This update impacts a wide range of industries, including construction, pharmacy, and childcare, which are among the sectors we serve at Trendsight.

For businesses, this means updating your payroll to reflect the new minimum wage rates. It’s crucial to stay compliant with these changes to avoid any legal issues and to ensure your employees are paid fairly.

You can find more details on the Fair Work Commission’s official announcement.

Changes in Tax Tables

The ATO has also updated the tax tables from 1 July 2024. These changes will affect the amount of tax withheld from your employees’ pay. The new tax tables take into account recent adjustments in tax rates and thresholds, ensuring that tax withheld aligns with current legislation.

For employers, this means updating your payroll software or manual calculations to reflect the new tax rates. Accurate tax withholding is vital to avoid any discrepancies and ensure compliance with ATO requirements. If you have any automated bank transfers for your payroll, you’ll also need to ensure you’ve updated the transfer amounts as these will have changed.

For the latest tax tables, visit the ATO’s official page.

How Trendsight Can Help

Navigating these changes can be daunting, but you don’t have to do it alone. At Trendsight, our comprehensive bookkeeping services are designed to help you manage your finances efficiently. From adjusting superannuation contributions to updating award rates and tax tables, we ensure your business remains compliant with all regulations.

Our team of experts stays up-to-date with the latest changes, so you can trust us to provide accurate and timely advice. By partnering with Trendsight, you can focus on growing your business while we take care of the financial details.

For more information on how our bookkeeping services can support your business, contact us today.