The Australian Taxation Office (ATO) has advised businesses to update their payroll and accounting systems, with two big superannuation changes due to take effect on 1 July 2022.
First, more employees will be eligible for the super guarantee. That’s because the $450-per-month eligibility threshold will disappear in the new financial year. However, your business won’t have to pay superannuation to workers aged less than 18 years, unless they work more than 30 hours in a week, according to the ATO.
Second, the superannuation guarantee rate will increase from 10% to 10.5%. The ATO says businesses will need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July. The super guarantee rate is scheduled to then keep rising to 12% over the next three years:
- 11% on 1 July 2023
- 11.5% on 1 July 2024
- 12% on 1 July 2025
ATO’s five-point super checklist
To make sure your business is meeting its superannuation obligations, the ATO recommends you check:
- Which of your staff and contractors are eligible for super
- That you’re paying them the right amount
- That you’re paying their super at the right time
- That you’re paying it to the right place (i.e. a complying super fund or retirement savings account)
- That you’re keeping records to show you’ve met your obligations