Changes to Superannuation from 1 July 2022

A reminder to all members that from 1 July 2022 the compulsory employer superannuation contribution will increase from 10% to 10.5% of an employee’s ordinary time earnings. Please be aware that the 10.5% will apply to the whole pay period, even if some or all of the pay period is for work done prior to 1 July 2022.

Another change coming into effect from 1 July 2022 is the removal of the $450 monthly threshold. Prior to 1 July 2022, employers were not obligated to make superannuation contributions on behalf of employees who earn less that $450 per month. However, from 1 July 2022, this will no longer be the case. Employers will be required to make superannuation contributions for all employees regardless of how much they earn. However, employers are only required to make superannuation contributions for employees under 18 years old if they work more than 30 hours in a week.

For more information, please refer to the ATO website here.