Superannuation Update: Removal of the $450 per month threshold Super guarantee eligibility

The Australian Government announce in the 2021-22 federal Budget that it would remove the $450 per month threshold in order to expand coverage of super guarantee to eligible employees, regardless of their monthly paid income.

The change is now law by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021External Link with royal assent on 22 February 2022.

From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee's super fund regardless of how much the employee is paid. Employees must still satisfy other super guarantee eligibility requirements.

The ATO will work with digital service providers to assist tem in updating their payroll and accounting software to be ready for this change.

Employers will need to check their payroll and accounting systems have been updated for super payments made after 1 July 2022 to ensure they correctly calculate their employee’s super guarantee entitlement.

10 views0 comments