The super guarantee (SG) rate will increase from 10% to 10.5% which comes into effect from 1 July 2022.
The rate you're required to use depends on when your employee is paid, not when the income is earnt. This means if you pay an eligible employee on or after 1 July 2022, you will need to pay their super at 10.5% regardless of how much they have earned, even if some or all of the pay period it relates to is before 1 July 2022.
The SG rate is scheduled to progressively increase to 12% by July 2025.
Paying super to 'eligible' employees regardless of how much they earn
Remember you will need to pay super to your employees who earn less than $450 per month, provided they meet other eligibility requirements.
This change expands super guarantee eligibility so that employees can receive super regardless of how much they earn.
Time to prepare for SG changes
To prepare for these changes, check your payroll and accounting systems are updated to incorporate the increase to the super rate.
Reminder - changes to minimum wage rates
Minimum wage rates will also increase from 1 July 2022. This means that the national minimum wage will increase by $40.00 per week (5.2%). This amounts to $812.60 per week or $21.38 per hour. The minimum wages in modern awards will increase by 4.6%, subject to a minimum increase for adult award classifications of $40 per week (38 hours).
For more information about the changes in minimum wage rates, please read our employer alert.
We're here to help you
We want to make sure you are meeting your super obligations. Our team are here to help you with any questions you may have about paying eligible employees, setting up your accounting system or any questions about minimum wage rate increases.
Please get in touch with your trusted Ulton Advisor on (07) 4154 0400 or chat with Ulton's Human Resources Consulting Team on (07) 4154 0413.
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