All employers must be aware of Superannuation Guarantee changes that will take effect from 1 July 2022. We summarise them as follows.
From 1 July 2022 Super Guarantee’s will increase to 10.5% (currently 10%). Employers will be required to calculate super on payments made to employees on or after 1 July 2022 at this rate. The new rate is applied to all payments from 1 July 2022 even if part of the pay run relates to work performed before this date.
This increase is part of the Federal Government’s plan to increase Super Guarantee to 12% by 2025, with a 0.5% increase on 1 July each year.
Additionally, effective from 1 July 2022 is the removal of the $450 per month eligibility threshold for Super Guarantee payments. This means that all employees over the age of 18 will need to be paid Super Guarantee regardless of how much they earn. Employees under the age of 18 will need to be paid super when they work more than 30 hours in a week.
Most accounting systems will cater for the above changes but payroll around these dates should be carefully reviewed to ensure that you continue to meet your employer obligations.
If you are unsure if your accounting system is compliant with these changes, or would like to discuss the changes in further detail, please contact your Principal Adviser at Prosperity.Prosperity offer Outsourced Payroll services to assist our clients in ensuring compliance with their employer obligations around payroll and related matters. If you would like to discuss these services further please contact us.