Super Changes Melbourne Business Owners Need to Know for 2024/25
As a Melbourne business owner, you must stay on top of super changes to be financially successful and compliant. The 2024/25 financial year brings several super changes that will impact how you manage your business’s super obligations and contributions.
As one of Melbourne’s trusted business accountants, RDV Business Solutions, we will keep you informed and guide you through these changes.
Let’s get into the super changes you need to know and how they will affect your business.
1. Superannuation Guarantee (SG) Rate Increase
One of the most significant changes for the 2024/25 financial year is the Superannuation Guarantee (SG) rate increase.
From July 1, 2024, the compulsory superannuation contribution rate that employers must make on behalf of their employees will increase from 11% to 11.5%. This is part of the government’s plan to increase the SG rate to 12% by 2025.
As a business owner, you need to ensure your payroll systems are updated to reflect this new rate. Failing to make the correct contributions can result in penalties and extra administrative burden.
Our team at RDV Business Solutions can help you update your systems and processes to be compliant with the new SG rate. Contact us today to ensure your business is ready for these changes and avoid any penalties.
2. Concessional and Non-Concessional Contributions Caps
Non-Concessional Contributions Cap
The cap for concessional contributions (employer contributions and salary sacrifice) will increase from $27,500 to $30,000. This means both employers and employees can contribute more to superannuation without extra tax.
Concessional Contributions Cap
The cap for non-concessional contributions (after-tax contributions) will increase from $110,000 to $120,000. This means individuals can put more after-tax money into superannuation and have more flexibility in retirement planning.
Maximising these contribution caps can help reduce taxable income while increasing retirement savings for both employers and employees.
If you need assistance in developing strategies to take advantage of these changes, our team at RDV Business Solutions is here to help.Contact us today to learn how you can optimise your contributions and benefit from these new caps.
3. Preservation Age Increase
From July 1, 2024 the preservation age – the age you can access your superannuation benefits – will increase to 60 for everyone. This means individuals who are 59 will have to wait until they turn 60 to access their superannuation.
As a business owner, you need to be aware of this change, especially if you’re approaching retirement age or have employees nearing this milestone.
4. Catch-Up Concessional Contributions
The catch-up concessional contributions provision is still relevant for business owners. This allows individuals with superannuation balances below $500,000 to carry forward unused concessional cap amounts from previous years (since 2019) and make extra contributions.
This can be a great tool to reduce taxable income and increase superannuation savings especially for business owners who have had fluctuating incomes in recent years. Our business advisory services can help you work out if you’re eligible and how to use this.
5. Single Touch Payroll (STP) Finalisation
As an employer, you must finalise your employees’ Single Touch Payroll (STP) by July 14, 2024. This end-of-year task ensures your employees have the correct information for their income tax returns.
Timely and accurate STP finalisation is important to stay compliant and avoid penalties. At RDV Business Solutions, we can help you meet your STP obligations efficiently and accurately.
Contact us today to ensure your STP finalisation is handled seamlessly and in compliance with regulations.
6. Instant Asset Write-Off
This is not superannuation-related, but it is worth noting that the instant asset write-off threshold for the 2024/25 financial year will be $20,000 per asset for eligible small businesses with a turnover up to $10 million. This can greatly impact your business’s cash flow and financial planning and may free up resources for more superannuation contributions.
Action Items for Melbourne Business Owners
To be prepared for these superannuation changes, consider:
- Updating your payroll to reflect the new SG rate of 11.5%.
- Review your contribution strategies to use the increased concessional and non-concessional caps.
- Educate your employees about the superannuation changes, including the increased caps and new preservation age.
- Make superannuation payments on time to avoid penalties, allowing for processing times through clearing houses.
As your Melbourne business accountant, RDV Business Solutions is here to help you through these changes. Our superannuation management and compliance expertise will guide you through these updates so your business stays compliant and optimises your superannuation.
Don’t get caught out by these superannuation changes. Contact RDV Business Solutions today for personalised advice and service for your business. Let us help you turn these changes into opportunities for growth and stability.
Book a consultation with RDV Business Solutions today.
