Compulsory Super (SGC) rising to 10% + MYOB & Xero requirements

For payroll processed from the 1st July 2021 onwards, compulsory super guarantee charge (SGC) will be payable at 10% of wages.

For super liability wages are called  “ordinary times earnings” (OTE). OTE is the amount you pay employees for their ordinary hours of work, including things like commissions and shift loadings but does not include overtime and certain allowances. For an explanation of what constitutes OTE go to this ATO link to work out the minimum super guarantee contribution for your employees:

https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings/

MYOB – You need to manually go into the SGC category and change the rate to 10% prior to processing any payroll from 1st July 2021 onwards.

Xero – You need to ensure your SGC category is set to “statutory rate” and then the change will be updated automatically.

If you have any further questions or need assistance in this area please feel free to contact us.