From 1 July 2022, two important super guarantee charge (SGC) changes will apply that will affect your business. These are:

the rate of SG is increasing from 10% to 10.5%, and

the $450 (or $350 for some Awards) minimum monthly earnings threshold for when SGC is paid is also being removed.

So while employee’s are effectively getting an indirect payrise, employers need to factor this into their budgeting for next financial year.

Employees under the age of 18 will also find themselves eligible to be paid super as well when they work more than 30 hours a week. For more information refer to the ATO website Super – When the 30 Hours Count.

What you need to do

Check that your software is updated to correctly calculate your employees’ SGC entitlement from 1 July 2022. You may have noticed payroll software providers like XERO and MYOB have already started providing information and updates about incorporating these changes.
If the removal of the $450 threshold means you’ll be paying SGC for one or more employees for the first time, you’ll need to give them a Standard Super Choice Form to complete.
If your employee does not provide you with a choice of super fund you may have the option of using a stapled super fund. This is an existing super account linked to an individual employee.

Take some time to read here for more detailed information from the ATO to understand the changes to Super and how they will affect your business.

Trade Guardian are here to help you with these changes. If you need any assistance about the above or have any general questions, please reach out and Contact Us.