Get ready for changes to super guarantee
Two very important super guarantee changes will apply from 1st July, 2022.
Under Australia’s Superannuation Guarantee laws, employers are currently required to pay the equivalent of 10% of ordinary time earnings over the Financial Year. However, from 1st July, 2022 the rate will increase to 10.5%.
In addition to this change, we will see the $450 per month eligibility threshold for when super guarantee is paid to be removed.
What all of this means
As of 1st July, 2022, every employee will be entitled to 10.5% of their earnings be paid by their employer to a selected superannuation fund, no matter the amount they earn.
As your tax agents, NCS Group will be happy to assist you with these changes. The ATO website will also offer updated online tools and calculators which they have confirmed are available in time for the new legislation.
If the removal of the $450 threshold means you'll be paying superannuation guarantee for one or more employees for the first time, you'll need to give them a Standard Choice Form.
If your employee does not return to you a choice of super fund, you will be able to pay your requirements to a stapled super fund that is linked to an individual employee.
Please feel free to reach out to us should you have any questions on the matter.