Two BIG superannuation guarantee changes are coming in the new financial year, and we have you covered with everything you need to know.
As of the 1st of July 2022:
- The rate of superannuation guarantee is increasing from 10% to 10.5%
- The $450 per month eligibility threshold for superannuation guarantee payments is being removed.
As a business, what does this mean for you?
It means you will need to update all your employees’ super contributions to 10.5%. You may have to start making super contributions for staff that you haven’t had to in the past.
What do you need to do?
Xero will automatically change your super contribution rate to 10.5%. However, for those of you who have pay periods that may fall mid-financial year, you may have to calculate manually for that payment only.
If you have any employees that you need to start paying super contributions, you will need to attain their superannuation account details. This can be done by giving them a Superannuation Standard Choice Form.
If the employee can not provide a Superannuation account, you will need to check for their Stapled Super Fund information. A Stapled Super Fund is linked to an individual employee, so it follows them as they change jobs. To learn more about Stapled Super Funds, visit the ATO website.
