Super Guarantee Rate Rises in July to 11%

Bookkeeping
April 18, 2023

Share via

As a business owner, it’s essential to stay up-to-date with changes to legislation that can affect your operations. The superannuation guarantee statutory rate rise is one such change you must be aware of.

The superannuation guarantee statutory rate will rise to 11% in July 2023. It will increase by 0.5% each year until July 2025. At that time, the rate will reach 12% as legislated. This change will impact your business’s finances, and it’s essential to start preparing now to avoid any unpleasant surprises.

Here are some steps you can take to prepare for the rate rise:

Review current super costs for all employees.

It is essential to understand your current superannuation expenses and how the rate rise will impact them. This review will help you calculate the revised payroll costs from July, showing the current wages and superannuation expenses compared to the new rate from July. Highlighting the increased amount per month or quarter will help you know the impact.

Review any salary packaging arrangements.

If you have salary packaging arrangements, you must review the contract’s wording to ensure you apply the changes correctly. This change may also impact annualised salary arrangements, so reviewing these arrangements is crucial.

Discuss the super rate increase with employees.

Let your employees know that there will be an increase of 0.5% each year until July 2025, when the SG rate will reach 12% and remain there. This will help manage their expectations and avoid surprises when the change occurs.

Plan for higher payroll expenses from July.

Short or late payments of super contributions can incur hefty penalties, so it’s essential to plan now for higher payroll expenses from July. Getting organised now means you’ll be well prepared for your business’s increased costs when the first payment is due later this year.

Seek professional help if needed.

If you need clarification on the superannuation guarantee statutory rate rise or help review your payroll costs and employee agreements, talk to one of our specialist accountants today. We can provide accurate reports to make planning for the rate rise easy.

The superannuation guarantee statutory rate rise will impact your business’s finances, and it’s essential to start preparing now. Review your current superannuation costs, discuss the rate increase with your employees, and plan for higher payroll expenses from July. Seek professional help if needed, and you’ll be well-prepared for the change when it comes into effect.

If you’re not actively managing your loan, chances are you’re paying more than you need to — and missing out on savings of $50 a week or more.

Whether it’s a mortgage, personal loan, or asset finance, small tweaks can unlock big savings. At AFP Finance & Loans, we’ve helped clients reduce repayments by over $2,600 a year — without changing their lifestyle or taking on more risk.

This article breaks down practical, proven ways to help you save around $50 each week on your repayments — and why working with a broker enables you to reach your goal of paying off your loan more easily.

1. Lower Your Rate

One of the simplest ways to save $50 a week is by securing a better interest rate. According to findings by PEXA, homeowners who refinanced to a new lender saved an average of $1,908 per year (nearly $37 per week) compared to just $384 annually for those who stayed with their original lender.

The kicker? Existing customers often pay 0.21% more than new customers. That small difference could mean an extra $70 each month on a $526k mortgage.

Refinancing through a trusted broker at AFP Finance & Loans ensures you’re not just accepting the status quo. We compare lenders, negotiate better terms, and help you avoid hidden costs.

Tip: If your rate drops, keep repayments the same to pay off your loan faster and save more in interest.

2. Switch to Weekly or Fortnightly Payments

Most people don’t realise they can make an extra month’s repayment each year just by switching from monthly to fortnightly payments.

If your lender calculates interest daily, this simple change can cut years off your loan and save thousands in interest.

While more frequent payments may not free up the whole $50 immediately, the compound savings are significant over time.

3. Use an Offset Account

Do you have savings sitting in a separate account? You could be missing an opportunity to save $50 each week in interest.

An offset account is a type of bank account linked to your loan. The balance in this account is used to offset the principal (the amount you still owe) — meaning the interest you pay is calculated on a reduced balance.

An offset account allows your money to shrink your loan amount, without locking your savings away. Funds remain fully accessible — but while they sit in the account, they’re actively working to lower the interest you pay (without any extra repayments).

For example, keeping $50,000 in offset on a 6% loan saves about $3,000 a year — or $57 a week — making every dollar work harder for you.

4. Cut Hidden and Ongoing Fees

Fees can quietly erode your savings. Annual package fees can range from $300 to $400, and monthly service fees still exist on many products.

By switching to a low-fee alternative or refinancing smartly, you could reduce your outgoings by $10–$15 a week. We review fee structures and recommend lenders who offer genuine value — not just teaser rates.

Why Work with a Broker?

From refinancing and rate shopping to offset structuring and fee analysis, you will be supported from start to settlement with AFP Finance and Loans. We’ll act on your behalf, comparing options and securing better terms.

With access to over 50 lenders on our accredited panel, AFP Finance & Loans assists clients with residential loans, commercial loans, personal loans, investment finance, and more. We do the heavy lifting so you can focus on what matters to you.

How to Start Saving $50 a Week, Today

You came here to save $50 a week on your loan, and by now you should see it’s easier than it sounds.

Many people overpay without realising. However, with better advice and a few simple adjustments, you can lower costs, improve cash flow, and stay on track financially.

The next step? Get expert eyes on your current agreement. AFP Finance & Loans can help you reduce repayments, avoid fees, and structure your loan repayments to serve your goals.

Book your loan review today to put $50 a week back where it belongs: in your pocket.