For the first time since 2010, we are about to start a new financial year under a Labor government. In any event there will be changes to eligibility and the super guarantee (SG) rate to come into effect on 1 July 2022.
31 May 2022
Eligibility
New eligibility criteria states that:
Employees can receive SG, regardless of how much they earn, as the $450 per month eligibility threshold is being removed.
Super only needs to be paid to employees that are under 18 when the employee works more than 30 hours in a week.
Rate
On 1 July 2022, the SG rate will increase from 10% to 10.5%. Employers will need to use the new rate to calculate super on payments made to employees on or after 1 July 2022. This includes some or all the pay period for work done before 1 July 2022. The SG is set to increase to 12% by 2025.
As a point of clarification, Rudy Junaidy, associate director at Gunderson Briggs Chartered Accountants said that:
“The new 10.5% Superannuation Guarantee rate will only apply to the payroll pay runs which have their payment date on and after 1 July 2022. This includes situations where some or all of the payroll pay run period is for the work done before 1 July 2022.
Whether June 2022 quarter super is paid in June or July 2022 is not relevant. What is relevant is the payroll pay run payment date.”
An example of this is as follows:
A business is on a fortnightly payroll in arrears. For the last pay run relating to June 2022, a few days will fall in June and the rest will fall in July. As the payroll is in arrears, the payment date for that pay run will be in July 2022 and the applicable SG rate will be 10.5% for the whole fortnight even where a few days in that fortnight fall in June 2022.
Should you need help with the new rates and eligibility for the SG, please do not hesitate to get in touch with us.
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