As the new financial year approaches, there are changes to who is eligible for super and how much you need to pay.
Removal of the $450 per month threshold for super guarantee eligibility
From 1 July 2022, employees can be eligible for super guarantee (SG), regardless of how much they earn. This is because the $450 per month eligibility threshold for when SG is paid is being removed.
You only need to pay super for workers under 18 when they work more than 30 hours in a week.
Super guarantee rate increase
The super guarantee rate will increase from 10% to 10.5% on 1 July 2022.
The rate of 10.5% will need to be applied for all salary and wages paid on and after 1 July 2022, even if some or all of the pay period it relates to is before 1 July 2022. The SG rate is legislated to increase to 12% by 2025.
What this means for you
You’ll need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate.
The scheduled rate increases and dates can be found at ato.gov.au/SuperRate
These changes mean that from 1 July 2022:
– you’ll need to make SG contributions at the new rate of 10.5%
– employees can be eligible for SG, regardless of how much they earn.
You may have to pay SG for the first time for some or all of your employees.
What you need to do
Check that your software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022.
If the removal of the $450 threshold means you’ll be paying SG for one or more employees for the first time, you’ll need to give them a Standard Choice Form.
If your employee does not provide you with a choice of super fund, you’ll need to request a stapled super fund. This is an existing super account linked to an individual employee.
Contact our team if you’d like help to prepare for the changes so you continue to pay the right amount of super for your employees.