IMPORTANT UPDATE FOR EMPLOYERS.
Get ready for two important changes to Super Guarantee!
From 1 July 2022, two important Super Guarantee (SG) changes will apply to your business. These are:
- The rate of SG is increasing from 10% to 10.5%
- The $450 per month eligibility threshold for when SG is paid is being removed.
What this means for you
These changes mean that from 1 July 2022:
- You’ll need to make SG contributions at the new rate of 10.5%
- Employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.
What you need to do
Check that your payroll software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022.
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, review the Stapled Super Fund information on the ATO website for guidance on what you need to do next. A stapled super fund is an existing super account linked to an individual employee.
The ATO is here to help
You’re likely to have already received a letter from the ATO with this information. The ATO are workingwith digital service providers (DSPs) to make sure payroll software is updated in time.
However, it’s the responsibility of the employer to ensure the update is completed accurately & on time – some payroll software programs will require you to manually update them.
For more information please visit the ATO website here: Superannuation for Employers or call them directly on 13 10 20.
You can also contact your Highview Bookkeeper or Accountant if you’re still unclear of the actions you need to take. We too are here to help!