Super Guarantee Rate
On 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%. The rate you’re required to use depends on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July. To prepare for these changes, check your payroll and accounting systems are updated to incorporate the increase to the super rate, and update any payroll spreadsheets that reference the superannuation guarantee percentage. You may also need to discuss this change with HR, so that any relevant employment contract clauses can be amended. The SG rate is scheduled to progressively increase to 12% by July 2025.
Super Eligibility
From 1 July 2022 you will need to pay super for employees, regardless of how much you pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility is being removed. This change doesn’t affect other eligibility requirements for SG. Workers who are under 18 still need to work more than 30 hours in a week to be eligible.
To see more detail on superannuation obligations for employers, click here
