There are several changes related to superannuation that apply from 1 July 2022.
One change relates to the super guarantee (SG) rate, which will increase from 10% of an employee’s ordinary time earnings to 10.5% on 1 July 2022.
The ATO advises that the new rate of 10.5% must be used to calculate employee super on or after 1 July, even if some of the work was undertaken before that date.
The removal of the threshold for paying the SG can also impact payroll and accounting systems, as more employees may become eligible for superannuation. From 1 July employees can be eligible for super regardless of how much they earn. The former $450 per month eligibility threshold no longer applies. However, workers under 18 only need to be paid super if they work more than 30 hours in a week.
More detail about changes to superannuation for employees is available from the ATO website. Further changes will be introduced by 2025, when the SG rate is legislated to increase to 12%.
If you have any questions, please get in touch.