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.
The change is now law by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021 with royal assent on 22 February 2022.
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. This applies to super for eligible contractors too (check out our blog on this topic for more details!).
Heading into late June it will be best to check your payroll and accounting systems to ensure that the settings have been updated correctly for any post 1 July 2022 superannuation payments.
For more information on any of the above items, please contact us on info@thegildgroup.com
