TAPSImportant changes to how much superannuation you need to pay your employees are now in effect. These apply to salary and wages paid from 1 July 2022, even if some or all of the pay period relates to work done before 1 July.

Here is a summary of the changes:

Superannuation increases to 10.5%

Employers should be aware that the superannuation guarantee rate has increased by 0.5%, from 10% to 10.5%. You’ll need to calculate super at 10.5% on salary payments you make to employees on or after 1 July 2022.

The superannuation rate is scheduled to progressively increase to 12% by July 2025.

ATO – Super guarantee percentage

Removing the $450 per month threshold for super guarantee eligibility:

Employers now need to pay super for all employees who are paid a salary and wage payments regardless of how much they earn each month, and there is no longer a $450 per month income threshold. 

NB: Be aware that employees under 18 will still need to work more than 30 hours in a week to be eligible for super.

Modern Awards that contain a $350 per month threshold for super guarantee eligibility:

From 1 July 2022, the $350 per month threshold for superannuation no longer applies under the:

  • Hospitality Industry (General) Award 2020 [MA000009]
  • Restaurant Industry Award 2020 [MA000119]

The Fair Work Commissioner varied these two awards following the Australian Government’s decision to remove the $450 per month super guarantee threshold from 1 July 2022 to remove any confusion that it may cause employers.

To view this decision:

Super threshold removed from some awards – FWC

Changes to super for under 18s:

Employees who are under 18 will be eligible for super if they work more than 30 hours in a week, regardless of how much they’re paid.

Here is an example provided by the ATO:

Take Lily, for example: She is 17 years old and works a 32-hour week once a month at her local hardware store, earning $382 before tax.  She also works 6 hours a month as a barista for a cafe down the road (a separate employer). As Lily works over 30 hours in one week in her job with the hardware store, her hardware employer will need to pay her super from 1 July 2022. As Lily does not work 30 hours in a week in her job as a barista, she won’t be entitled to super for this work.  Likewise, Lily won’t be entitled to super for any weeks she works less than 30 hours for the hardware store.

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