For businesses who employ staff, there are a number of super changes that come into effect from 1 July 2022.
As we move closer to the start of a new financial year, now is the time to check your payroll and accounting systems have been updated so you can correctly calculate your employees' super guarantee payments. Your digital service provider may be able to assist with further information on how and when they will implement software changes to reflect the new requirements.
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 scheduled rate increases and dates can be found at ato.gov.au/Rates/Key-superannuation-rates-and-thresholds
Removal of the $450 per month threshold for super guarantee eligibility
From 1 July 2022, employees who earn less than $450 in a calendar month (before tax) will now be eligible to receive super guarantee, regardless of how much they are paid. Employees who are under 18 will still need to work more than 30 hours in a week to be eligible for super guarantee, which has not changed. The ATO will update advice and guidance, including their online tools and calculators on 1 July 2022 to account for this change.
For more information, visit ato.gov.au/Business/Super-for-employers