Legislation has now been passed to remove the Super guarantee contribution (SGC) eligibility threshold.  The removal the SGC threshold will help to make the system fairer on women, younger workers, and those working low paid jobs to help boost their super for retirement.

From 1 July 2022, employers will now be required to pay SGC to their employees’ (over 18) super fund regardless of how much the employee is paid.

If you are an employer you will need to check your payroll system to ensure they have been updated to ensure they correctly calculate their employee’s super guarantee entitlement.  All employees are eligible for super regardless of if they are full-time, part-time or casual. If your employee is receiving a super pension or annuity while working, a temporary resident or a family member working in your business they are entitled to receive super guarantee contributions.  Also, important to note that from 1 July 2022, the super guarantee contribution is increasing to 10.5%.

Employees aged under 18 are entitled to super guarantee contributions if they work more than 30 hours a week or they are paid more than $450 (before tax) in a wage or salary in a calendar month.

Also, important to note that from 1 July 2022, the super guarantee contribution is increasing to 10.5%.

The Australian Taxation Office will have an online calculator to assist with calculating your SGC obligations.  If you have questions, please do not hesitate to contact us at [email protected]