It wouldn’t be business as usual without an upcoming change to your employer obligations, would it? The latest round of changes applies to superannuation.
Here’s a breakdown of the new super rules that will come into force in July 2022.
Minimum Income Thresholds Scrapped
Low-income workers will receive a boost to their superannuation after changes to existing laws were made in Federal parliament recently. Traditionally, there has been a minimum threshold of $450 per month (where super is not paid to a worker if they earn less than that) for employee super contributions. Low-income earners will benefit from the new legislation after the income threshold for employer contributions were scrapped effective 1 July 2022. Employers should take this into account when managing their wage costs, where they employ staff on lower incomes, or with minimum hours.
This means from July, around 300,000 Australians including nearly three-quarters of whom are women – will receive superannuation for the first time.
Super Guarantee Percentage Increase
From 1 July 2022, the super guarantee percentage will increase from 10% to 10.5%, in line with ongoing, annual increases up to 12% by 1 July 2027.
Super contributions for each employee are required to be paid on at least a quarterly basis.
As an employer, it pays to be on top of these obligations, as failure to pay the correct super entitlements can cause expensive damage, through late payment penalties (and paying the obligation as required).
If you’re unsure if your super obligations are up to date, it’s time to talk to us ASAP. Give us a call on 07 5479 5499 for a confidential discussion.
