Super Guarantee (SG) Changes

The ATO is reminding employers that from 1 July 2022, employees can be eligible for super guarantee (SG), regardless of how much they earn.

Furthermore, from 1 July 2022 through to the 30 June 2023 the super guarantee (SG) rates have increased from 10% to 10.5%. The ATO also also reminding employers to review there payroll program from the 1 July 2022 to ensure the rates have increased. Most payroll programs will have this change automatically in place but it worth just checking.

The Super eligibility changes are because the $450 per month eligibility threshold for when SG is paid is being removed, this was announced in the 2021 Budget. However, employers need only to pay super for workers under 18 when they work more than 30 hours in a week. The ATO also reminded employers that the SG rate will also increase from 10% to 10.5% on 1 July 2022. As a result, employers will need to use the new rate to calculate super on payments made to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July.