Superannuation changes starting from 1 July
From 1 July 2022, if an employee is over 18 years old, the business has to pay superannuation on top of their wages regardless of how much they earn.
*Prior to 1 July 2022, employees had to earn $450 or more before tax in a calendar month before SG was required to be paid.
Increase to Superannuation Guarantee from 10% to 10.5%
From 1 July 2022, the SG rate is set to increase by 0.5% to 10.5% for all employees. The SG percentage will increase to 12% by 1 July 2025 with increases of 0.5% scheduled each financial year through to 1 July 2025.
The minimum the business must pay is called the superannuation guarantee (SG) which is currently 10% of an employee’s ordinary time earnings (OTE). OTE is usually the amount the employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments. To work out what the business must pay, multiply the employee’s OTE for the quarter by the SG rate.
The business must pay SG at least four times a year, by the quarterly due dates which are as follows:
Period Due Date
1 July – 30 September 28 October
1 October – 31 December 28 January
1 January – 31 March 28 April
1 April – 30 June 28 July
The business must pay and report superannuation electronically in a standard format, ensuring they meet SuperStream requirements. The superannuation payments must go to a complying superannuation fund, most employees can choose their own fund.