Changes to superannuation are coming

In May 2021, as part of the 2021–22 Federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.

From 1 July 2022 employers will be required to make super guarantee contributions to their eligible employees’ super funds regardless of how much the employee is paid. Employees must still satisfy other super guarantee eligibility requirements.

Generally, all employees are eligible for super. It does not matter if the employee is:

• Full-time, part-time or casual
• Receiving a super pension or annuity while working (this includes employees on transition to retirement)
• Temporary resident, such as a backpacker
• Company director
• Family member working in your business

For information on employee eligibility for super visit the ATO website.

The Federal Budget 2022 has also maintained the super guarantee to increase 0.5% on 1 July each year until it reaches 12% in 2025. On 1 July 2022 the super guarantee amount will increase to 10.5%.

If you want to find out more, please contact CloudPayroll on sales@cloudpayroll.com.au or phone 02 9042 2689.