Beginning Friday, 1 July 2022, the compulsory superannuation contribution rate will be increased from 10% to 10.5%.
The superannuation legislation was amended in 2021 whereby the Super Guarantee (SG) rate was to increase by 0.5% increments each year until it reaches 12% by 2025.
- Up till 30 June 2021 - 9.5%
- 1 July 2021 to 30 June 2022 - 10%
- 1 July 2022 to 30 June 2023 - 10.5%
- 1 July 2023 to 30 June 2024 - 11%
- 1 July 2024 to 30 June 2025 - 11.5%
- From 1 July 2025 - 12%
Moreover, from 1 July 2022, employees can be eligible for SG regardless of how much they earn. This is because the $450 per month eligibility threshold for when SG is paid is being removed. Please seek appropriate financial expertise should you need further information/clarification.
You will need to use the new rate to calculate super on payments you make to employees on or after 1 July 2022, even if some or all of the pay period is for work done before 1 July 2022.
For example:
If work was done in June (or partly in June and partly in July) but employees were paid in July, the rate is 10.5% and contributions totalling 10% of the employee’s ordinary time earnings for the September 2021 quarter must be made to the employee’s superannuation fund by 28 October 2022.
If the work was done in July but employees were paid in advance (before 1 July 2022), the rate is 10% and contributions totalling 10% of the employee’s ordinary time earnings for the June 2022 quarter must be made to the employee’s superannuation fund by 28 July 2022.
For any further information/clarification, please contact the ACA NSW office on 1300 556 330 or nsw@childcarealliance.org.au.
PUBLISHED: 26 JUNE 2022