From the 1st of July 2022, the Superannuation Guarantee (SG) will be increasing to 10.5% for all employees, regardless of their income. Continue reading below to see how you can prepare your business for the changes.
The $450 per month threshold will be removed
Rate is increasing from 10% - 10.5%
The rate increase will be effective from 1 July 2022
Rate Increase On schedule with the Bill passed by the Federal Government in 2021, the SG rate will be increasing to 10.5% from the 1st of July 2022. The SG rate will continue to rise in 0.5% increments up until 1 July 2025. Please see the below schedule outlining the increments:
Up to 30 June 2021
1 July 2021 to 30 June 2022
1 July 2022 to 30 June 2023
1 July 2023 to 30 June 2024
1 July 2024 to 30 June 2025
From 1 July 2025
Removal of the $450 Threshold
Employees who have previously been limited to the $450 monthly income threshold will no longer be subjected to this. All employees are now eligible to receive SG payments at the new rate of 10.5% from 1 July 2022. If you have employees that will be receiving super payments for the first time, you will need to provide them with the Superannuation Standard Choice Form so they can nominate a super fund of their choice.
If your employees do not provide you with a choice of super fund, you will need to request their stapled super fund details from the ATO to avoid penalties and to comply with the rules. For more information on requesting stapled super fund details, click here.
Check that your payroll software is updated with the correct SG rate (10.5%)
Provide employees with the Super Standard Choice Form
Review the stapled super fund information if employees do not provide you with a choice of super fund
How Can I Speak with an Accountant to Understand More?
You can book an appointment to speak with an Accountant by calling our Office on 02 4340 2415 or sending an email to email@example.com