The amount employers pay and employees may additionally contribute to superannuation balances changes on July 1, 2022. Now is a good time to talk with your team, check their agreements and prepare your payroll systems.
Recap
Generally, superannuation contributions must be paid for:
- an employee aged 18 or over who earns $450 or more (before tax) per calendar month; and
- an employee under age 18 working over 30 hours per week.
The changes
- From 1st July 2022 the $450 minimum no longer applies, ie superannuation is now payable regardless how little the employee earns in a month.
- The superannuation guarantee contribution rate will increase from 10% to 10.5%.
- The maximum amount an employer is required to pay superannuation based on employee quarterly earnings increases from $58,920 to $60,220.
- The concessional contribution cap remains at $27,500 (carry-forward of unused concessional contributions may apply).
As an employer, what should you be doing?
Keep on top of your employer obligations. We’re ready to help. Contact our team to discuss further as needed on +61 3 9820 6400.
Software providers being asked to help with TPAR
It is possible by the end of 2023, Taxable Payments Reporting Payments (TPAR) will be all able to be wrapped up in Business Activity Statements (BAS).
As a part of the Budget Announcements, the Government issued a statement about working with accounting software providers to see if they have the capacity to deliver specific reporting systems by 31 December 2023. This should allow taxpayers to report Taxable Payments Reporting Payments System data on the same lodgement cycle as their activity statements.