Superannuation Guarantee Liabilities are changing
As of 1st July 2022, there are two main changes to how you pay your employees’ Superannuation Guarantee Contributions.
The Federal Budget 2022 has maintained the Super Guarantee’s legislated increase to 12% by 2025.
From July 1st 2022, the Super Guarantee increases to 10.5%.
It will increase by 0.5% on the 1st of July each year until it reaches 12% in 2025.
Compulsory superannuation rate
Removing the $450 threshold for super contributions
The $450 monthly earnings threshold for superannuation contributions will also be removed on 1 July 2022. Under the change, employers will be required to pay the superannuation guarantee on the wages of employees’ earning less than $450 per month.
For employees under the age of 18, unless they are covered by a workplace agreement that states otherwise, you will need to pay superannuation if they work more than 30 hours in a week.
We are still waiting to find out if your accounting software provider, such as Xero and MYOB are going to update this automatically for you. Further information will be at hand closer to the time. Therefore this is just for your information only and no steps are required to be taken at this stage.