With the end of Financial year upon us, we thought it was a good time to remind businesses about some of the incoming changes relating to superannuation that are coming into effect on 1 July 2022 in this short update.

The first major change coming into effect is going to be an increase in the employer contribution rate from 10% to 10.5% as of 1 July 2022.  This is part of the gradual increase to a target rate of 12% which is legislated to come into effect on 1 July 2025.  For reference, the gradual increase will see a 0.5% increase each financial year.

The second change that is coming into effect is the removal of the $450 per month threshold for superannuation guarantee eligibility.  This change effectively sees that all wages earnt by all employees qualify for the superannuation guarantee.  For businesses this may pose an administrative burden for very short term or sporadic employees particularly with the choice that employees have regarding superannuation funds.

So that’s it for this short update with a reminder that this is a general discussion on this topic and for specific advice we would encourage you to see a licensed professional.