The Super Guarantee (SG) is getting a shake up on 1st July 2022.
Whether you’re a business owner and have employees, or if you are an employee, the changes to SG are going to affect you one way or another.
As far back as I can remember, working out super has been a bit fiddly. But since bookkeeping packages came into existence, they certainly made life a whole lot easier.
SG rate increase
The rate is rising again. It’s going up from 10% to 10.5%. This will steadily increase until 2025 when the percentage will be 12%. Each year the rate will increase by .5%.
SG threshold scrapped
Up until now, there was a threshold on how much the Employee needed to earn before super was paid. They needed to earn at least $450 per month, in the hospitality sector, the threshold was $350.00.
Over the past few years, the percentage of your earnings you received into your super fund has slowly risen.
But as at 1st July 2022, the SG is going to get a super shake-up.
The limit to what you earn before super is paid will be scrapped, so for every dollar you earn, 10.5% of that will be paid into your super fund.
What you need to do
If you are using a bookkeeping package, the updates should be made by the service provider (eg – MYOB or Xero) before 1 July 2022.
If you have a Bookkeeper or Accountant, reach out to them to make sure these changes have been made before the next payrun after 1st July.
Even if you’ve had employees on your books, if they didn’t reach the threshold each month, you wouldn’t need to pay them super.
With the scrapping of the threshold, this could quite easily change.
If you find you have an employee in this category, get them to fill out a “Standard Choice form”, this will make sure that you have all the information you need.
This form can be downloaded directly from the ATO website. Click this link, there’s instructions there on how to fill it out too.
If you employee anyone under the age of 18, they will only recieve super if they work 30 hours or more in a week. This hasn’t changed, it’s the same as before 1st July.
So to finish off with, just make sure your bookkeeping package shows the updated super changes. If you can’t see it, check in with your Bookkeeper, they’ll know where to look.
Once you are sure that it’s all been changed to show the new legislation then you’re right to process your first superannuation payment for the new financial year.