Super to cover more employees
Removing the $450 per month threshold for super guarantee eligibility
As of 11 May 2021, as part of the 2021–22 federal Budget, there have been changes to rules surrounding the super guarantee
The 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.
The ATO will work with digital service providers to assist them in updating their payroll and accounting software to be ready for 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.
The ATO will update their advice and guidance, including online tools and calculators on 1 July 2022 to account for this change.
Are you fully across your employer obligations?
The increased focus on tax governance processes being in place for farms and businesses highlights the need to be more aware of record-keeping obligations required under various tax laws. Carrick Aland’s digitised management and bookkeeping services help make your life easier because we streamline your bookwork and make sure you hit every regulatory deadline. Read more here or call our CAConnect Team on 07 4669 9800.