Super Guarantee Changes from 1 July 2022
As the new financial year approaches, you need to be aware of changes to the super guarantee (SG) which may impact some employees. From 1 July 2022, two important super guarantee changes will apply to your business.
From 1 July 2022, employees can be eligible for SG regardless of how much they earn. This is because the threshold of $450 per month is being removed. Also, the rate of SG is increasing from 10% to 10.5%.
With the threshold to SG removed for the lowest earners, you may need to pay SG for the first time for some or all of your employees. So don’t forget to give them their superannuation forms to fill in now so you are poised to make these contributions to their fund by 1 July 2022.
Administrative and software updates you’ll need to ensure you are up to date
You’ll also need to increase your employees SG contributions at the new rate of 10.5%.
The ATO is working with digital service providers (DSPs) to make sure payroll software is updated in time. If you use a tax agent, they’ll also be aware of these changes and will be able to assist you.
The ATO’s updated online tools and calculators will be available to help you from 1 July 2022. However, you’ll need to check that your software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022.
For employees who qualify for the first time due to the removal of the threshold, you’ll need to give them a Standard Choice Form to fill in.
If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on the ATO’s website for guidance on what you need to do next. A stapled super fund is an existing super account linked to an individual employee so it follows them around, as they change jobs.