Superannuation Guarantee Changes

To avoid additional costs, including the superannuation guarantee charge (SGC), employers must pay the correct amount of superannuation for all eligible employees by the quarterly due date.

Whether you’re paying superannuation weekly, monthly, or quarterly, it’s important to check the superannuation guarantee (SG) that you pay takes into account the new SG changes that started on 1 July 2022.

These were:

  • An increase in the SG rate from 10% to 10.5%
  • The removal of the $450 per month eligibility threshold when paying SG.
  • Employers must apply these changes to all the salary and wages paid from 1 July 2022, even if some of the pay period they related to was before 1 July 2022.
  • All other eligibility requirements for superannuation remain in place. For example, an employee under 18 years of age must still work for you for more than 30 hours in a week to be eligible for superannuation.

Make sure that:

  • Your payroll and accounting systems are up to date and reflect the July updates to SG
  • You’ve calculated and paid the correct amount of SG for all eligible employees
  • SG amounts are paid in full by the due date.

Note: Employers must pay the SGC if your total SG amounts for the period 1 July 2022 to 30 September 2022 are not received by your employees’ superannuation funds by 28 October 2022.

Failure to meet an employer’s SG obligations means having to pay the SGC. You’ll need to lodge an SGC statement and remit payment of the SGC to the ATO. This approach will cost more than paying the correct SG on time. Penalties or charges may also be incurred. SGC is not tax deductible.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.