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Changes to superannuation guarantee from 1 July 2022

Changes to superannuation guarantee from 1 July 2022

The statutory Superannuation Guarantee rate will increase from 10% to 10.5% of ordinary time earnings from 1 July 2022. In line with legislation aimed at supporting working Australians in retirement,  this rate will continue to increase by 0.5% per year until it reaches 12% in 2025.

The penalty for non-compliance is the super guarantee charge (SGC), which is not tax deductible.

The other forthcoming change is the removal of the $450 per month threshold. From 1 July 2022, employers must pay super guarantee for all eligible employees, regardless of whether or not they earn $450 or more in a month. The main exception to this is for under 18s working less than 30 hours per week.

Note that most software will apply the changes automatically. In any case, please review your payroll settings come July. or contact us for help.