As the new financial year approaches, there are changes to who is eligible for super and how much you need to pay.
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.
An employee’s eligibility for SG is determined by when they are paid salary and wages, not when they earn the income. This means, if you pay an eligible employee on or after 1 July 2022, the new rules will apply to the full amount, regardless of whether some or all of the pay period it relates to is before 1 July. If this change means you’ll be paying SG for an employee for the first time, you’ll need to follow the choice of super fund rules.
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.
If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.
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