As the new financial year approaches, there are some superannuation changes that you need to be aware of - including who is eligible for super and how much you need to pay.
Employees who earn less than $450 per month will be eligible for Super Guarantee (SG) from July 2022. There is no longer an age restriction on when SG is payable, except when workers under 18 work more than 30 hours per week.
The SG rate will increase from 10% to 10.5% on 1 July 2022. You must use the new rate for superannuation payments to employees for work done on or after 1 July, even if some or all of the pay period is for work done before that date. By 2025, the super guarantee will increase to 12%.
Ensure that you keep your payroll and accounting systems updated so that you continue to pay the right amount of super for your employees. It is surprising how many businesses, even large organisations with HR departments, don't keep their super and payroll systems in sync.