Get ready for super guarantee changes from 1 July 2022

Superannuation guarantee (SG) is the minimum percentage of earnings that an employer has to pay into their employee’s super fund to help fund their retirement and is a legal obligation.

What is changing

From 1 July 2022, two important SG changes will apply to businesses.

These are:

• The rate of SG is increasing from 10% to 10.5%
• The removal of $450 monthly income threshold for super contributions. This means employees can be eligible for SG regardless of how much they earn. You may therefore have to pay SG for the first time to some or all of your employees.

What you need to do

• You’ll need to ensure that your software is updated to calculate the new employees’ SG entitlement from 1 July 2022.
• If you have employees that are going to receive SG for the first time, you will need to give them a Standard Choice Form.
• If the employee neglects to provide you with a choice of super fund, you need to contact the ATO to request their Stapled Super Fund details. A Stapled Super fund is an existing super account linked to an employee and follows them around as they change jobs. Be aware that if you don’t meet your choice of super fund obligations, additional penalties may apply.

How we can help

TaxAssist Accountants can assist with your superannuation needs including:

• Setup and Administration of Self-Managed Super Funds (SMSF)
• Assistance with Lump Sum withdrawals
• Assistance on Property, Shares & Investments inside Superannuation Funds
• Audits on Super Funds

If you need advice on any of the financial aspects of running your business, please contact us today on 03 8594 1811 or complete our contact form. We’ll be glad to help.

Last updated: 9th July 2022