29/06/2022
A quick shout out to our clients; business and individual:-
Superannuation Changes
Millions of Australians will receive higher superannuation payments from their employer on July 1.
Compulsory employer contributions – known as the superannuation guarantee or SG – will rise from 10 per cent of wages to 10.5 per cent when the new financial year kicks in.
It’s part of a longer-term plan to raise the SG to 12 per cent of wages by 2025.
But it’s not the only big change coming to super on July 1.
1. Superannuation guarantee increase
The hike to the superannuation guarantee means most people on awards and enterprise agreements will see their super payments increase by 0.5 percentage points.
Check your payslips from 1 July 2022 ensure your super payments have risen in line with the SG.
If they haven’t, there are two possible reasons why.
Firstly, your boss may not have lifted your super payments, and would therefore be underpaying you.
Get onto that quickly by contacting whoever organises your payments: Underpayment of super runs into billions of dollars every year and can seriously erode retirement balances.
Secondly, some people are on pay arrangements where superannuation is included in overall pay and is not listed as an extra benefit.
If you’re on one of these contracts then the extra money paid into your super will come out of your wages and you will be no better off.
If you don’t see an increase in your super payment and you aren’t sure why, check with your employer to clear up any confusion.
2. Super for part time-workers
Until now, anyone earning less than $450 per month per employer has not been entitled to superannuation payments.
But that is changing from July 1 with the SG being paid to everyone regardless of their income.
The only exception is those under 18.
Teenagers will have to work at least 30 hours per week to be entitled to an SG payment.
If you haven’t been paid superannuation up until now because of the $450 monthly earnings threshold, then your boss may ask for the details of the super fund you would like to be paid into.
You will probably have to sign documents to create an account if you haven’t got one, but again check with your pay office to see what the situation is.
