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Removing the $450 per month threshold for super guarantee eligibility

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This information has been taken from the ATO website.

https://www.ato.gov.au/General/New-legislation/In-detail/Super/Removing-the-$450-per-month-threshold-for-superannuation-guarantee-eligibility/

‘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
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID

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

 

 

 

 

 

 

 

 

Reminder that Superannuation is now 10% commencing 1st July 2021

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Also don’t forget that STP (Single Touch Payroll) is compulsory, this has been a legal requirement for 2 years.

‘The Superannuation Guarantee (SG) rate as currently legislated will increase from 9.5% to 10% with effect from 1 July 2021 with further increases of 0.5% per year to come from 1 July 2022 until it reaches 12% from 1 July 2025 onwards. The SG rate increases were not affected by the 2021-22 Federal Budget’

Are you up to date for all your employees?

Do you need help?

If so, please do not hesitate to call me direct 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

How the Budget will affect your super

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Did you know about these recent changes which may affect your super?
In summary, this is what the Government have outlined.

– $450 monthly threshold for superannuation payments have now been scrapped
– First home super saver scheme maximum increased from $30,000 to $50,000
– Work test for super contributions scrapped for ages 67-74
– Super downsizing contribution age threshold reduced to 60

I am sure you didn’t know this information. As a Bookkeeper I must keep up to date on a daily basis of changes. This is what I do each day to ensure all my clients are up to date.
If you need assistance in relation to Superannuation | Bookkeeping, then please give me a call.

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!!

 

Have you accessed your Superannuation during this COVID-19 Crisis?

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For many business owners, both large and small, during the COVID-19 Crisis, many have accessed their Superannuation during the COVID-19 Crisis.

It has actually been a necessity for many to help them keep their cashflow going and keep the business and their staff afloat so they can continue.

Even though on both sides of parliament, they were not happy for the Government to allow the access of $10,000 in the current Financial Year and another $10,000 in the New Financial year to be accessible, but it truly has been a bonus for many businesses who are trying to keep staff on, keep stock coming in to sell and for others, just to purely survive.

If you are one of those businesses out there, you are not alone.

Personally, I do hope businesses are using that superannuation to good use and they are able to obtain a ROI if and when they access and use this money.

In the large scheme of things, we normally are never allowed to touch this money until retirement, but in the current economic climate we are in, I can see why the Government has allowed this and tax free too for those that have funds available to access and use.

Not that I am a financial planner, but if you have any questions relating to access to your superannuation or want to know more how you can use this money effectively and efficiently when it comes to Bookkeeping, then please do not hesitate to contact me anytime.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au

COVID-19 CRISIS Do you really want to withdraw your Superannuation early, the Government has allowed early access?

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https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/?anchor=Compassionategrounds#Compassionategrounds

The Government has allowed early release of Superannuation, allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

The best thing is, that individuals will not need to pay tax on amounts released and it won’t affect payments such as Centrelink or Veteran Affairs payments. The dates the Government has imposed for the first amount you can apply from mid-April up to before 1st July 2020, the further $10,000 you can access from 1st July 2020 until 24th September 2020, after that it will not be available.

So, there are a couple of requirements though, they are:

  • If you are unemployed
  • You are eligible to receive a job seeker payment, youth allowance, parenting payment (including those on single and partnered payments) special benefit or farm household allowance.
  • Or you have been made redundant
  • Your working hours have been reduced more than 20% or more
  • If you are a sole trader and your business has either suspended or there was a reduction in your turnover of 20% or more

But is it wise to actually access your superannuation? It really comes down to case by case, but remember, once it’s taken, that $20,000 will take some time to build again into your Superannuation fund, so it’s food for thought.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au

Superannuation Guarantee and what that means for you

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The Government has given employers a deadline of until 7 September 2020 to disclose any superannuation guarantee shortfalls before increased penalties apply.

You can also check the ATO’s website  to find out more what employers are required to complete.

‘The amnesty allows employers to claim tax deductions for payments of SG charge or contributions made during the amnesty period to offset SG charge, as well as remove the administrative component and the Part 7 penalty that may otherwise apply in relation to SG non-compliance’.

‘Around 7,000 employers have since come forward to voluntarily disclose historical unpaid super since the amnesty was first announced on 24 May 2018.

Treasury estimates an additional 7,000 employers will come forward during the six-month amnesty period, returning $230 million of superannuation to employees who may have otherwise completely missed out’

Now if this sounds confusing, then give me a call directly on 0429 363 047.

Maree Punzet
Maree’s Mobile Bookkeeping
0429 363 047
Qualified BAS agent with over 20 years Bookkeeping experience
www.mareesmobilebookkeeping.com.au