$450 per month super guarantee threshold to be removed

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From 1 July 2022, employers must pay all employees super guarantee payments, regardless of how much they earn.

HERE’S WHAT YOU NEED TO KNOW

Currently employers may not need to pay employees superannuation guarantee if they earn less than $450 in a month. From 1 July 2022, the law will change to make sure that employers now pay superannuation guarantee for all employees regardless of their total amount earned in the month.

The ATO will be working with digital service providers and accounting software to update their payroll applications to cater for this change. Employers will need to check that their payroll systems have been updated for these changes from 1 July to avoid making any errors.

WHO DOES THIS CHANGE AFFECT?

This new law affects all employers who pay employees. It no longer matters if the employees are part-time, full-time or casual, a temporary resident or a family member who works in the business. You can use the ATO’s super guarantee eligibility tool to check whether an employee is eligible.

https://www.ato.gov.au/Calculators-and-tools/Host/anchor=ECDTSGET&anchor=ECDTSGET/questions/SGET&anchor=ECDTSGET/questions/SGET#ECDTSGET/questions/SGET

For more information on the above changes and eligibility criteria, please use the below links:

https://www.ato.gov.au/business/super-for-employers/work-out-if-you-have-to-pay-super/

https://www.ato.gov.au/General/New-legislation/In-detail/Super/Removing-the-%24450-per-month-threshold-for-superannuation-guarantee-eligibility/

If you require any assistance with the above changes, please call our office on 07 5439 0188 or email us at admin@hintertax.com.au.

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