How will the changes to Superannuation Guarantee (SG) affect you

From 1^st July 2022, two important Super Guarantee (SG) changes will apply:

1. the rate of SG is increasing from 10% to 10.5%
2. the $450 per month eligibility threshold for when SG is paid will be removed.

What does this means for Businesses

These changes will mean that from 1^st July 2022:

• you’ll need to make SG contributions at the new rate of 10.5%
• employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time to some employees.

What you need to do

Check that your software is updated to correctly calculate your employees SG entitlement from 1^st July 2022.

By removing the $450 threshold you may be paying SG to employees for the first time, if so, you will need to give you’re employee a Standard Choice Form.

If your employee does not provide you with a choice of Superannuation fund, then review the Stapled Super Fund information from the ATO on what to do next.

What does this means for an Individual

From 1^st July 2022 the superannuation guarantee (SG) changes from 10% to 10.5%. Your employer must now contribute an extra .5% to your Superannuation Fund.

If you previously were below the $450 threshold and your employer was not paying SG, you are now eligible to receive payments into your Superannuation Fund.

You will need to complete a Standard Choice Form to choose your Superannuation Fund you want your SG to be paid into.

Source: ato.gov.au