Over the past few months, there have been some changes to Compulsory Super Guarantee. It is important that you are aware of the following changes:
For payroll processed from 1 July 2022 onward, compulsory super guarantee (SGC) will be payable at 10.5% of wages, which is up from 10% previously.
If you are using MYOB, the rate will automatically update to 10.5% if the Super Guarantee Pay Item is set at “minimum rate required”. If this is not set, you will need to manually update the employees rate to 10.5%. If you are using Xero, you need to ensure the SG category is set to “statutory rate” and then the change will automatically be updated.
In addition to the SG rate increase, the $450 income threshold has now been removed. This means for all employees over 18, regardless of how much they earn or work, you need to pay them super. If you have employees under 18, they are required to work more then 30 hours a week before super is payable on their wages.
In this regard, there is nothing you need to do if you are using MYOB, if the payment is dated 1 July 2022 or later, MYOB will ignore the threshold field and automatically calculate super on employees over 18. This is the same case in Xero, the removal of the $450 threshold will automatically be applied to your pay runs.
If you have any further questions, please feel free to contact us.