From 1 July 2022, two important superannuation guarantee (SG) changes will apply to your business. These are:
- the rate of SG is increasing from 10% to 10.5%
- the $450 per month eligibility threshold for when SG is paid is being removed.
What this means for you
These changes mean that from 1 July 2022
- you’ll need to make SG contributions at the new rate of 10.5%
- the increased SG rate applies to all payments for wages which are paid from 1 July 2022 onwards. If your wages are paid in arrears, pre 1 July wages which are not paid until after the end of the financial year will attract the increased SG rate.
- 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. For employees under the age of 18, SG is only paid if the employee works more than 30 hours per week.
- If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on our website for guidance on what you need to do next. A stapled super fund is an existing super account linked to an individual employee.
If you would like more information regarding super guarantee, please contact us as soon as possible on (07) 3217 5700 or [email protected]
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