Super or superannuation guarantee contributions as its formally known as is going to increase to 10.5% from 1 July 2022.
The rate was at 9.5% for 7 years to June 2021 and then 0.5% increase annually has been set till it reaches 12% on 1 July 2025.The increaments might seem minor (“just” 0.5% per year) but can make a substancial accumulative effect over long term for both employees and employers.
Another change coming up from 1 July 2022 is the removal of the $450 superannuation guarantee threshold. Under current legislation a business doesnt have to pay an employee’s superannuation until the employee breaches the $450 earning threshold in a month. Once that is reached then superannuation was payable on the enture earnings.
Category: NEXT ZERO