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“Super compliance is not just a deadline, it’s a duty. Staying ahead of legislated changes protects your people and your organisation.”

This final step reflects the Australian Government’s continued focus on long-term financial security and retirement adequacy. It also signals an important compliance milestone for all employers as we move toward the 2025–26 financial year.

What Employers Need to Do

To ensure a smooth transition, employers should act now:

Update Payroll Systems
Ensure payroll software and internal processes are set up to apply the new 12% SG rate from the first full pay period on or after 1 July 2025. If you’re unsure, speak with your payroll provider well in advance.

Communicate with Employees
Let your team know about the upcoming change. It’s important to clarify whether the increase will impact total remuneration or take-home pay, particularly for those on total package or salary-inclusive arrangements.

Review Budgets and Forecasts
Higher SG contributions may affect staffing budgets and workforce planning. Now is the time to revisit your financial projections to factor in the increase and avoid surprises in the new financial year.

This change is a statutory requirement and applies to all eligible employees, whether they are full-time, part-time, or casual.

If you have any questions about the upcoming SG increase or require support in preparing your payroll systems, please contact The BelRose Group at Support@BelRoseGroup.com.au or phone 1300 308 707.

“Compliance isn’t a checkbox, it’s a commitment. When Award obligations are overlooked, the risks to organisations are immediate and avoidable.”

For organisations that engage employees under levelled or annualised salary arrangements, now is the time to conduct a comprehensive salary audit.

It is essential to ensure that each employee is receiving, in practice, no less than they would be entitled to under the applicable Modern Award. This includes a proper reconciliation of Award-based entitlements such as overtime, penalty rates, allowances, and mandatory rest periods between shifts. The Fair Work Commission has reinforced that annualised salary arrangements must not result in employees being disadvantaged, and that employers must be able to demonstrate that the total annual remuneration equals or exceeds what would have been paid under strict Award compliance.

This assessment requires a detailed review of actual hours worked, entitlements accrued, and any variances in working patterns. It should be conducted at least annually, or whenever there are material changes to Award conditions or business operations. Maintaining accurate records is not just good practice, it is a compliance requirement that helps mitigate the risk of underpayment claims or regulatory scrutiny.

If your organisation needs support navigating these changes, The BelRose Group is here to assist. We provide expert guidance on Award compliance, payroll auditing, and the review of annualised salary arrangements. Our practical, tailored approach ensures your systems are compliant and fit for purpose.

For trusted advice and hands-on support, connect with our team today.