The new financial year begins on the 1st of July 2022 and will bring changes to superannuation in Australia that will affect employers and their employees.
These upcoming changes include the removal of the $450 per month Superannuation threshold plus the increase in the Superannuation Guarantee (SG) from 10% to 10.5%.
Employers are encouraged to be up to date on these changes to make a smooth transition.
- Prepare for changes by identifying employees who currently don’t receive super contributions
- Ensure your Single Touch Payroll (STP) is up to date ready for the SG rate increase
- Hire the services of a certified bookkeeper to assist with preparing for the changes
Prepare for changes by identifying employees who currently don’t receive super contributions
The removal of the $450 per month Superannuation Threshold means employees who currently don’t receive superannuation contributions, because they earn below $450 each month, will begin being paid super contributions from 1st July 2022. Employers will be required to pay Superannuation Guarantee (SG) on every dollar earnt, including the first $450. Employers can prepare by ensuring their payroll and accounting systems are updated for superannuation payments made after 1 July 2022 to ensure they correctly calculate their employee’s super guarantee entitlement.
Ensure your Single Touch Payroll (STP) is up to date ready for the Superannuation Guarantee (SG) rate increase
The SG is the minimum amount an employer must pay into your superannuation, on top of your salary or wages. From 1st July 2022, this rate will increase from 10% to 10.5% p.a. of employees’ wages or salary. This rate is scheduled to continue to increase progressively to 12% by July 2025 with the intention of ensuring people can save enough for a suitable retirement. If your business has employees, you’ll need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate effective 1st July 2022.
Hire the services of a certified bookkeeper to assist with preparing for the changes
If you are needing assistance to stay up to date with payroll and superannuation changes or need help implementing these changes, hiring the services of a certified bookkeeper can be a wise business decision. Bookkeepers and BAS Agents can assist employers by keeping you informed on the upcoming changes in legislation, helping you to budget for these increases and ensuring you are meeting compliance requirements.
Bookkeeping Matters in Adelaide can manage the payroll requirements for your small or medium business including Single Touch Payroll (STP) reporting.
At Bookkeeping Matters, we are in business because we’re driven to see yours succeed. We genuinely want the best for you and will go above and beyond to bring order to your finances, so you can spend time on the things that matter most.
Find out more about how we can help you by calling June on 0423 003 552.
Disclaimer: The information in this article is general information only
Reference: ICB Members Newsletter February 2022