Changes to Superannuation Guarantee from 1 July 2022
The ATO has advised that, from Monday 23 May 2022 through to Thursday 2 June 2022, a range of SMS, emails and letters will be progressively sent out to over one million employers letting them know about important changes to superannuation guarantee (SG).
The notifications from the ATO will outline changes to SG, which include:
- The increase in the rate of SG from 10% to 10.5% (Norfolk Island: the rate increases from 6% to 7%)
- The removal of the $450 per month eligibility threshold for SG.
These changes mean that, from 1 July 2022:
- Employers must make SG contributions at the new rate of 10.5% (Norfolk Island: 7%) for salary and wage payments made on or after 1 July 2022, even if some or all of the pay period is for work done before 1 July 2022.
- Employees must be aware that employees can be eligible for SG regardless of how much they earn.
- SG contributions need only be made for workers under 18 years of age when they work more than 30 hours in a week.
- If an employee is eligible for SG for the first time because of the removal of the $450 eligibility threshold, their employer needs to provide them with a Standard Choice Form.
- Employees should check that their payroll software is updated to correctly calculate employees’ SG entitlements.
- The ATO is working with digital service providers to ensure payroll software is updated in time, as well as its online tools and calculators for SG.
More information about this can be found at the ATO here.
If you require assistance implementing updates to your payroll regarding the changes to the superannuation guarantee, please contact us Contact Us