Superannuation going up to 10.5% effective 1st July 2022

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This excerpt has been taken from the link below.

https://www.cglaw.com.au/superannuation-payment-requirements-extended/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=LinkedIn-integration

A new bill introduced into federal parliament will see compulsory superannuation payments extended to more workers from July 2022.

Currently the Australian superannuation system requires an employer to make regular contributions, 10% of an employee’s wage, into an employee’s chosen superannuation account.

At present, an employee is currently entitled to super guarantee contributions from an employer if they are 18 years old or over and are paid $450 or more (before tax) in a month from a single employer.

However as a result of legislative changes introduced by the Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021, and supported by both sides of the political arena, from 1 July 2022, the $450 monthly earnings threshold will be removed, and the Superannuation Guarantee will also rise to 10.5% from this date.

This means that from 1 July this year, employers will be required to make 10.5% superannuation contributions for their workers earning less than $450 in pre-tax income per month.  However, if an employee is under the age of 18, unless they are covered by a workplace agreement that states otherwise, the employee will need to work more than 30 hours in a week before they become eligible for superannuation payments

It is interesting to note that the employees who are affected by this measure, who earn less than $450 a month from a single employer, tend to be female, young, lower-income, part-time workers. Industry Super Australia claims that this change will see almost 300,000 Australians being paid super for the first time, of whom about 63% per cent are women and notes that this is an important step towards providing adequate retirement savings for low-income earners, particularly for women and younger Australians.

If you would like to know further information about this, please give Maree a call directly on 0429 363 047.

Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID

 

 

 

 

 

 

 

 

The ATO has issued a reminder to businesses who may be subject to penalties for missing October 2020 deadline to fulfil their Superannuation Guarantee Obligations

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Don’t be one of those businesses that is subject to penalties.

By law, the ATO has advised and reminded businesses they cannot extend the due date to pay superannuation.

If you have already missed the 28th October deadline to pay your quarterly SG contributions, you will need to lodge a superannuation guarantee by the 28th November 2020 to avoid penalties, after this date you will incur the penalties and believe me you don’t want to miss the deadline.

‘The ATO noted the superannuation guarantee charge is different to the regular contributions businesses pay and is made up of SG shortfall amounts, interest on those amounts (currently 10 per cent) and an administration fee of $20 per employee per quarter’

If you need assistance now, then please give me a call on 0429 363 047.

Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID

We are a full service, insourced Payroll and Bookkeeping business that puts money back in your pocket. Our team works like a full-time employee and part of your business when it comes to processing your Payroll and bookkeeping, but without the cost or other concerns full time employees bring.   When compared to a full-time employee, we give you all the benefits and more but save you around $60,000 a year in costs, makes good financial sense!!