Removing the $450 per month threshold for Super guarantee eligibility.
The Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay.
The change is now law by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021 with royal assent on February 22, 2022.
From July 1 2022, employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid.
Employees must still satisfy other super guarantee eligibility requirements.
For instance, the rules for workers under the age of 18 will remain generally the same. They will still only be eligible for SG contributions if they work more than 30 hours per week.
The ATO will work with digital service providers in updating their payroll and accounting software to be ready for this change.
Employers will need to check that their payroll and accounting systems have been updated for super payments made after July 1, 2022 to ensure they correctly calculate their employees’ super guarantee entitlements.
The change will expand the coverage of SG to eligible employees regardless of their monthly pay. The ATO have advised that they will update their advice and guidance, including online tools and calculators, on July 1, 2022 to account for this change.
Tree contractors with any queries in relation to this matter are invited to contact the TTIA National Timber Hotline on (02) 9264 0011.