Here’s a quick guide to the key changes that may impact your business in 2022/23.
- Rise in Superannuation Guarantee Rate – the amount of superannuation employers must pay their employees increased on July 1, 2022, from 10% to 10.5%.
- Superannuation Monthly Threshold – the $450 monthly eligibility threshold for Super Guarantee payments was removed on July 1, 2022, which means employees can be eligible for Superannuation payments regardless of how much they earn.
- Increase in the national minimum wage from July 1, 2022 increased by 5.2%.
Rise in Superannuation Guarantee Rate
The amount of superannuation employers must pay their employees increased on July 1, 2022, from 10% to 10.5%.
This is legislated to increase to 12% by 2025.
The Australian Taxation Office (ATO) is reminding employers that they will need to use the new rate to calculate
super payments on or after July 1, even if some or all of the pay period covers work that was performed before July 1.
Superannuation Monthly Threshold
The $450 monthly eligibility threshold for Super Guarantee payments was removed on July 1, 2022, which means employees can be eligible for superannuation payments regardless of how much they earn.
Basically, employers after that date will be obligated to pay all employees (except for employees under 18 years old with less than 30 hours per week) superannuation contributions of 10.5%, regardless of whether they earn more than $450 per month.
Increase in Minimum Wage
The national minimum wage from July 1, 2022 increased by 5.2% so Australian employees will be entitled to a minimum take-home weekly pay of $812.60, or $21.38 an hour. This represents a weekly increase of $40 a week, with some 2.7 million Australians covered by the minimum employment standards.
Minimum Modern Award wages also went up by 4.6% on July 1, subject to a minimum increase of $40 per week. All payroll officers should urgently check to ensure each of their employees are being paid the equivalent of any applicable Modern Award, including wages, penalty rates and overtime. Please note, for certain Modern Awards in the aviation, tourism and hospitality sectors, the increase
won’t come into effect until October 1, 2022.
All employers will be able to check how the new rates will apply to their business via the Fair Work Ombudsman’s updated Pay and Conditions Tool.