The ATO has reminded employers that from 1 July 2022 they will need to pay super for employees, regardless of how much they pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility is being removed. However, workers who are under 18 still need to work more than 30 hours in a week to be eligible.

The ATO also emphasised that an employee’s eligibility for SG is determined by when they are paid salary and wages, not when they earn the income. This means, if they pay an eligible employee on or after 1 July 2022, the new rules will apply to the full amount, regardless of whether some or all of the pay period it relates to is before 1 July.

Super guarantee rate to increase on 1 July

The ATO has reminded employers that on 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%. It also pointed out that the applicable rate will depend on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July. The ATO also stated that to prepare for these changes, employers should check their payroll and accounting systems are updated to incorporate the increase to the super rate.