Increase in Super Guarantee Rate

From 1 July, employer superannuation increases from 10% (for 2021/22) to 10.5% (for 2022/23).

The percentage applies to Ordinary Times Earnings :   which includes salary and wages, commissions and bonus', directors fees, and some allowances and leave payments.

Payments to individual labour-only contractors , who are considered to be an employee, also require that super be paid.

Abolition of $450 Threshold

Also from 1 July, employees must contribute super for all employees ,   removing the   previous threshold where earnings less than $450 in a month were excluded.

Choice of Super and Stapled Super

Employees can direct superannuation to their choice of fund (Standard Choice Form), and since 1 November 2021, if the employee does not notify a choice the employer is required to contact the ATO to determine if there is a ' stapled super fund ', which is an existing super account linked to the employee.

Penalties

If super is not paid on time to the ATO, within 25 days of the end of each Quarter, the penalty can be   as high as 200% and the super when paid as a Super Guarantee Charge is not tax deductible.

Payroll System

All employers must use Single Touch Payroll (STP) compliant payroll software.   Ensure that the system is updated to 10.5% for all employees from 1 July 2022.

STP Phase 2 commenced on 1 January 2022, but some software is yet to be updated and deferrals have been granted (check with your provider).   Phase 2 reports information on employees to other government agencies.   For information -    https://www.ato.gov.au/Business/Single-Touch-Payroll/News,-events-and-resources/?=redirected_STPresources