Brisbane 07 3263 7030 | Sunshine Coast 07 5452 7811

Removal of $450 per month SGC threshold now law

Removal of $450 per month SGC threshold now law

On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay. This change is now law.

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. Employees must still satisfy other super guarantee eligibility requirements.

The ATO is committed to working with digital service providers to assist them in updating their payroll and accounting software ahead of this change. Employers will need to check their payroll and accounting systems have been updated for super payments made after 1 July 2022 to ensure they correctly calculate their employee’s super guarantee entitlement.

As further information becomes available, we will update you.

0 Comments

Leave a reply