Super Guarantee increase: Has your business made the changes?

• Business News
• Superannuation

The Super Guarantee rate has now increased to 10.5% from 10%, effective from July 1st 2022.

As a business owner, the increased super contributions must be paid to your eligible employees to their nominated fund or retirement savings account to avoid charges.

What the rise in Super Guarantee means for your business

The key change to your business is the requirement to pay workers the increased Super Guarantee rate of 10.5% . This will impact your payroll.

Businesses are encouraged to double check this rate change has been updated across their accounting system and chat with their accountant if these changes have not yet been made.

Also, advise your workers of this change and make sure they check their payslips and super contributions. If your team isn’t sure where their super is paid, they can log into their myGov and go to the ATO section.

Any changes in the super system can be a good time to remind your employees to check their super accounts and balances.

Remember, the ATO advises it’s the date of the salary payment that determines the rate of Super Guarantee payable – not the date the work was completed. So if a worker is paid in July 2022 for work completed in June 2022, then the new 10.5% rate applies.

Removal of $450 monthly income threshold

As of 1 July 2022, the $450 minimum monthly income threshold has been removed.  This means workers, regardless of how much they earn, will be entitled to receive employer super payments.

Learn more

To find out more about what work the new Super Guarantee rate applies to, click HERE or contact our Superannuation team at Elevate Accounting on 08 9460 1040.