From 1 July 2021, superannuation guarantee changes were to increase incrementally each year to reach 12% by the 1 July 2027 – 30 June 2028 financial year. This means that on 1 July 2022, the SG changes will apply to your business for the 2022-23 financial year, raising the SG for employees.
The SG changes
From 1 July 2022, two important SG changes will apply to your business. These are:
- the rate of SG is increasing from 10% to 10.5%
- the $450 per month eligibility threshold for when SG is paid is being removed.
What this means
These changes mean that from 1 July 2022:
- you’ll need to make SG contributions at the new rate of 10.5%
- employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.
What you need to do
If you are using Xero, the software will automatically update your obligations in line with the above changes as long as your superannuation percentage is set to the “statutory percentage”.
We strongly recommend that you undertake an analysis of your payroll settings to ensure this is the case before 1 July 2022.
If you have any questions, please contact us.