Changes to super guarantee from 1 July
From 1 July 2022, two important super guarantee (SG) changes will apply to your business.
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 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. The Australian Taxation Office is working with digital service providers (DSPs) to make sure payroll software is updated in time.
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 will need to give them a Standard Choice Form. If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on the Australian Taxation Office website for guidance on what you need to do next. A stapled super fund is an existing super account linked to an individual employee.
As always, we're here to help, if you have any questions in relation to the superannuation guarantee changes, please contact our office on +617 5443 1432.