REMINDER: Superannuation contribution to increase to 10.5% on 1 July 2022

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