Get ready for super changes from 1 July 2022

With the new financial year approaching, there are two important super guarantee (SG) changes that will apply to businesses – how much you need to pay and who is eligible for super.

The SG rate will increase from 10% to 10.5% from 1 July 2022.  Employers will need to use the new rate to calculate super on payments made to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July.  Super contributions for each eligible employee are required to be paid on at least a quarterly basis.

The other important change to note is that the $450 per month eligibility threshold for when SG is paid is being removed, meaning employers will be required to make SG contributions to their eligible employee’s super fund regardless of how much the employee is paid.  For employees under 18 years of age, you only need to pay super if they work more than 30 hours in a week.

If the removal of the $450 threshold means you’ll be paying SG for one or more employees for the first time, you’ll need to give them a Standard Choice Form.

If your employee does not provide you with a choice of super fund, employers will be required to use the Stapled Super Fund details instead of the company’s default fund.

Make sure you update your payroll and accounting systems so that you continue to pay the correct amount of super for your employees.

To find out more on how the changes to super guarantee from 1 July impact your business, contact the team at Lockwood Partners.