Changes to Super Guarantee – Are You Ready?

 From the 1st July 2022, two important super guarantee (SG) changes will apply to your business. These are:

  • The rate of SG is increasing from 10% to 10.5%; and
  • The $450 per month eligibility threshold for when SG is paid is being removed.

These changes mean that from 1st July 2022:

  • you’ll need to make SG contributions at the new rate of 10.5%
  • employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.

Xero, our favourite accounting software, will ensure that your payroll software is updated in time.

What you will need to do

Where you will be paying SG for the first time for employees because the $450 per month eligibility threshold for SG has been removed, you’ll need to give them a ‘Standard Choice Form’.

If your employee does not provide you with a choice of super fund, then you will need to review the ‘stapled super fund’ (an existing super fund account linked to an employee) information on the ATO website for guidance on what to do next. Click here for this link.

Please make sure you understand this and get it right as the penalties and fines will be imposed for failing to.

Our team are here to support you during these changes, so please reach out on 55612643 if you need assistance.

Have a great day!

#sgchanges2022 #taxtiptuesday #cashflow #2022taxplanning #dontdonateanyextra #plantosavetax #chasingthedream

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