What happens when the Superannuation Guarantee contribution changes

Xero handles superannuation guarantee (SG) contribution rate increases and updates them for you. You can also manually update this in an employee’s pay template if necessary.

SG contribution increases

You need to pay your employees the new minimum SG contribution.

More information from the ATO website:

Key superannuation rates and thresholds

Just like tax tables, the new SG rates apply to the payment date of a pay run, not the pay period.

Updates to superannuation in Xero

We're making updates to Xero to automatically apply the correct rate of superannuation for your employees.

Like tax tables, we will store the SG rates and retrieve the right percentage based on the payment date of your pay runs.

No matter how the rates change over the years, we'll always have Xero up to date with the right percentage.

Automatic updates to existing employees

The Statutory Rate option will apply automatically to your employees' pay templates and superannuation lines if:

  • the contribution type = SG Contribution
  • the calculation type = Percentage of Earnings
  • the percentage applied on the employee's pay template is 9.00%.

New employees' pay templates will default to new statutory rate

When you set up a new employee's pay template, any superannuation lines you add will default to the statutory rate option.

You can change these default selections to apply them to the employee's pay template.

Check the SG rate on your existing employees' pays

The SG contribution will show where the Statutory Rate has been applied to employees. Whenever there is an update, Xero's super contribution will change accordingly.

What to check if the right rate isn't showing

If, when checking your employees' pays, you don't see the right superannuation rate for the year, it could be because:

Manually update an employee's pay template

To update an employee's pay template to use the Statutory Rate option, do the following.

  1. On the Payroll menu, click Employees.
  2. Select the employee.
  3. Select the Pay Template tab.
  4. Open the superannuation line.
  5. Check and select:
    • Type = SG Contribution
    • Calculation Type = Statutory Rate.

Once applied and saved, you will see 'Statutory Rate' against the payment line.

Be sure to reset the pay run if you need it to update with any changes to an employee pay template.