Super changes from 1 July 22 and beyond…
A few changes to super are just 12 weeks away. You need to be aware of these changes as they will not only affect your current employee costs but also need to be considered when negotiating remuneration for new employees.
The Super Guarantee Rate is about to increase
The Super Guarantee Percentage will increase from 10% to 10.5% from 1 July 2022. It will progressively increase by another 0.5% each 1 July following until it reaches 12% on 1 July 2025
Removing the $450 per month threshold for Super Guarantee eligibility
From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid.
A recap on who is an eligible employee can be found at here.
Reminder re Super Guarantee and Salary Sacrifice Arrangements
From 1 January 2020, salary sacrificed super contributions are no longer considered super guarantee contributions. This means super guarantee contributions must be paid on the pre salary sacrificed gross remuneration of an employee.
For example, if an employee elects to salary sacrifice 5% of their remuneration package into super, you are still required to pay super guarantee contributions on their ordinary times earnings, including the salary sacrifice amount.
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