What were the changes?
From 1 July 2022, the following changes occurred to the Superannuation Guarantee (SG):
- SG rate increased from 10% to 10.5% (and will eventually reach 12%)
- The $450 per month eligibility threshold has been removed.
These new changes must be applied to all salaries and wages from 1 July 2022.
Please note: Although the $450 per month threshold has been removed, employees aged under 18 must still work more than 30 hours a week to be eligible for super.
What should you do?
Following the changes above, you should:
- Ensure your payroll and accounting software have been updated to include the recent changes to SG. Most software should automatically update to the 10.5% SG rate
- Calculate and pay the right amount of SG to all employees entitled to it
- Pay SG liabilities by the due date. The due date is always the 28th day of the month following the end of a quarter. Meaning for the April-June quarter, super must be paid by July 28th.
If SG is not received by your employees superfunds by the due date, Superannuation Guarantee Charge (SGC) will apply.
What happens if you do not pay?
If you do not meet your SG obligations, you will need to lodge an SGC statement and pay SGC to the ATO.
This will always cost you more than paying the SG on time, and the SGC is a non-deductible penalty.
Source: ATO
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au