Superannuation Changes
As of 1 July 2022, the super rate will increase from 10% to 10.5%.
For salary and wage payments made on or after 1 July 2022, the new superannuation guarantee contribution rate of 10.5% will apply.
Super guarantee contributions for the quarter ending 30 June 2022 should be calculated at the old rate of 10%.
If you require help to work out how much super you need to pay your employees after 1 July, you can use the SG contributions calculator.
It’s important you pay your workers the correct amount of super. The SG eligibility decision tool will help you determine if your employees are eligible for super, including any contractors treated as employees for super purposes.
The super rate is scheduled to progressively increase to 12% by July 2025.
The ATO will update their advice and guidance, including online tools and calculators on 1 July 2022 to account for this change.
On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government also announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.
The change is now law by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021External Link with royal assent on 22 February 2022.
From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid. Employees must still satisfy other super guarantee eligibility requirements.
Employees eligible for super after 30 June 2022 include:
– Workers over 18 working ANY hours for the month
– Workers under 18 for each week that is worked 30 hours or more on ordinary time earnings (not on overtime)
Digital service providers will update their payroll and accounting software to be ready for this change.
If we do your payroll, we will check your payroll and accounting systems have been updated for super payments made after 1 July 2022 to ensure your employee’s super guarantee entitlement has been calculated correctly.
If you have any questions, you can book a phone meeting here or contact us using the form below.
– Team BKSP
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