Removing the $450 per month threshold for super guarantee eligibility
This information has been taken from the ATO website.
‘On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.
The change is now law by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021External Link with royal assent on 22 February 2022.
From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid. Employees must still satisfy other super guarantee eligibility requirements.
We will work with digital service providers to assist them in updating their payroll and accounting software to be ready for this change.
Employers will need to check their payroll and accounting systems have been updated for super payments made after 1 July 2022 to ensure they correctly calculate their employee’s super guarantee entitlement.
We will update our advice and guidance, including online tools and calculators on 1 July 2022 to account for this change.’
In other words, From 1 July 2022, the $450 per month threshold for super guarantee eligibility will be removed.
If you would like any further information, please contact Maree on 0429 363 047.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
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