Now that I’ve got your attention, did you know super laws are set to change again from 1 July 2022. Although the laws are yet to be passed, it is expected they will go through parliament without any changes.
Under the current legislation, anyone who is over 18 (exception is if you’re under 18 and work more than 30 hours a week) and earns less than $450 per month in wages is not required to be paid superannuation by their employer.
The above legislation came under review as part of the government’s plans to improve equality in the superannuation system, as the majority of workers who earn less than this monthly amount are women.
From 1 July 2022, employers will need to pay the super guarantee (SGC) on behalf of employees (regardless of what they earn) as long as they’re aged 18 years or over. In addition to this, the superannuation guarantee is set to increase to 10.5% from 1 July 2022. So if you employ staff who are over 18 and currently earn less than $450 per month, you’ll need to allow for this additional cost in your cashflow budget.
The data currently shows around 300,000 employees would benefit from removing the $450 per month threshold, with 63% of these employees being women.