Superannuation Changes and Important Dates
Superannuation Payments are due to the fund for the March quarter by 28th April 2022. Please ensure that your payments are processed in time to reach the funds by this deadline to avoid penalties.
Previously Superannuation was only payable once an Employee earnt more then $450 in a calendar month.
From the 1st May 2022, this exemption has been removed.
Superannuation is now payable on every dollar earnt.
This means that from 1st May 2022. Superannuation is payable to all Employees irrespective of how much they might earn. For those Casual Employees who may not have had Superannuation payable previously, you will need to collect their Superannuation Fund details form to be able to meet your Employer Obligation. It can be found here: https://www.ato.gov.au/Forms/Superannuation-(super)-standard-choice-form/
From the 1st July 2022 the Superannuation Guarantee amount will rise from 10% to 10.5% of Gross Salary and Wages. Employers will need to start budgeting for this percentage increase. The increase will continue to rise 0.5% each year until 2025 when it will hit 12%.
This is not an optional increase and Employers might comply or be forced to pay penalties as a result of non-conformance.
Depending on how your contracts are structured, will depend on which actions you need to take.
For contracts that are inclusive of superannuation, then it would be useful to write to your Employees and advise them of their new salary for the 2022/2023 Financial Year.
For contracts that are exclusive of superannuation, then it would be useful to write to your Employees and advise that the rate has now increased.
Irrespective of how your contracts are structured, communication is key. It’s best to not leave your Employees guessing how and what is happening in their situation.
We also recommend that you do this prior to the change occurring so that they are aware in advance.
If you’d like some assistance in managing the process, please let us know – Act Now – We are here to help – Call Now Actually 1300 605 305