As seen in Woopi News July 2022
From 1 July 2022 the superannuation guarantee (SG) rate will increase from 10% percent to 10.5%. The rate will also increase a further half a percent each year until it reaches 12% in 2025. Employers will need to make sure that their payroll system updates to the correct rate so they continue to pay the right amount of super for their employees. Employees being paid this increased rate over the period of their working life will allow them to accumulate and grow their superannuation having a sizeable impact on their super balance once they retire.
Other recent changes to superannuation announced by the Government includes the removal of the $450 per month threshold for super guarantee eligibility. This means that more employers will need to pay superannuation for their employees regardless of their monthly pay. For business in the hospitality and farming industries or that employ casual workers the change may now mean that they will need to start paying superannuation to more of their employees.
Another important factor businesses should keep in mind is paying their superannuation commitments on time. Employers need to make their super payments for their eligible employees at least four times per year to avoid the super guarantee charge. Due dates are the 28th of the month following each quarter and payments should be paid at least seven days before the due date to allow for these to be processed by the fund. If you’re an employer the key date for claiming contributions is not when you make the payment, you will only receive a tax deduction for payments on the date that they are received and processed by the super fund by the due date.
If you have any questions or need any assistance about meeting your superannuation commitments please do not hesitate to contact the team at StaySharp Accounting on 0408 308 101.