New Superannuation Changes take Effect from 1 July 2022

As of 1 July 2022, there are a number of important changes which come into effect impacting employers and the Superannuation of employees.

Removal of the Superannuation Guarantee Eligibility Threshold

From 1 July 2022, employees will be eligible for the Superannuation Guarantee Contribution regardless of how much they earn.

In-line with the change, the monthly minimum wage threshold of $450 for employees to qualify for SGC will be removed, with employers now required to pay Superannuation for employees 18 years' and older, even where they earn less than the previously legislated threshold amount each month.

For employees under 18 years' old, the Superannuation Guarantee Contribution will need to be paid by the employer, where the worked has completed 30 hours or more in the week.

Superannuation Guarantee Contribution set to rise

Similarly, from the date, the compulsory Superannuation Guarantee Contributions employers are required to pay to employees will increase to 10.5% from the current 10% rate.

Under the changes (first announced as part of the 2022/23 Federal Budget and which have now received Royal Assent), the Contribution Rate will increase by 0.5% year-on-year until 2025, remaining at 12% there-after.

The following table highlights the new Contribution Rates, which take effect over the coming years:

For More Information

Should you have any questions on how both the above may impact you or your business, please feel free to contact the Archer Gowland Redshaw office to speak with your adviser on (07) 3002 2699.