As the new financial year approaches, there are changes to who is eligible for super and how much you need to pay.
Changes to the Super Guarantee threshold
From 1 July 2022, employees can be eligible for super guarantee (SG), regardless of how much they earn. This is because the $450 per month eligibility threshold for when SG is paid is being removed. You only need to pay super for workers under 18 when they work more than 30 hours in a week.
Changes to the Super Guarantee Rate
The super guarantee (SG) rate will also increase from 10% to 10.5% on 1 July 2022. You’ll need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July. The SG rate is legislated to increase to 12% by 2025.
Make sure you update your payroll and accounting systems so that you continue to pay the right amount of super for your employees.
We have recently shared some thoughts around the impact of this for both younger and older individuals on the Everalls Wealth website, you can read that post here – New opportunities to grow your Super from 1 July 2022.
If you are concerned about what these changes might mean for your business, don’t hesitate to get in contact with us.