Get Ready For Changes to Superannuation from 1 July 2022
There are two important changes to SG Super to be aware of from 1 July 2022
1. Removal of the $450 per month threshold
From 1 July 2022, employers in Australia will be required to make super guarantee contributions to their eligible employee’s super fund, regardless of how much the employee has been paid.
Currently, employees need to earn a minimum of $450 per calendar month from an employer to be eligible to receive the Super Guarantee. The removal of the $450 per month threshold is great news for many part-time and casual employees who have multiple jobs and may be earning under the threshold at each place of employment.
It’s estimated that around 300,000 employees in Australia will benefit from the changes, and with women making up around two thirds of that number, the threshold removal is a great step towards reducing the super gap between men and women.
There are no changes to the SG exemptions for minors. Contributions are not required for employees under the age of 18 who work less than 30 hours per week, regardless of their monthly income.
The ATO is working with digital service providers to assist them in updating payroll and accounting software. Employers will need to ensure that their payroll and accounting systems are updated to handle the changes from the first SG payment cycle after 1 July 2022.
To find out more about changes to thresholds, you can check out the ATO website HERE.
2. Superannuation Increase to 10.5%
From 1 July 2022 the Superannuation Guarantee increases from 10% to 10.5%.
Employers will need to ensure that their payroll and accounting software is updated to the new rate for the first payroll payment after June 30 2022.
Each year, the Superannuation Guarantee will continue to increase until it reaches 12% on 1 July 2025.
Your contribution due dates remain the same, and remember, contributions must be in the Funds account by the due date. We always recommend processing super contributions at least one week prior to the due date to avoid possible penalty.
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