Changes to the superannuation guarantee will come into effect from 1st July 2022, impacting employer obligations as follows:
Superannuation guarantee % will increase to 10.5% of ordinary time earnings (OTE). It is currently 10% until 30th June 2022.
The minimum OTE threshold will be abolished from 1st July 2022. It is currently $450 per month until 30th June 2022. This means that if you pay your employees less than $450 per month currently, you do not have any superannuation obligations. This rule will change from 1st July, so that regardless of how much salary an employer pays, there will be a 10.5% superannuation guarantee obligation on all ordinary time earnings.
Employees under 18 years of age will be eligible to receive superannuation guarantee if they work more than 30 hours per week. Until 30th June 2022 they would need to meet the minimum OTE requirement of $450. This will be abolished from 1st July 2022.
Domestic or Private Workers will be eligible to receive superannuation guarantee if they work more than 30 hours per week. Until 30th June 2022 they would need to meet the minimum OTE requirement of $450. This will be abolished from 1st July 2022.
Contractors will be eligible to receive superannuation guarantee if they are paid mostly for their labour, even if they have a registered ABN. Until 30th June 2022 they would need to meet the minimum OTE requirement of $450. This will be abolished from 1st July 2022.
For more information about Superannuation Guarantee eligibility, you can use this tool on ATO’s website: CLICK TO ACCESS THE TOOL