New superannuation rules

The new financial year has begun, and with it, new superannuation rules.

The new super rules – flagged in the March 2022 Federal Budget and applicable from 1 July 2022 – affect how much superannuation employers need to pay their employees and who is eligible for Superannuation Guarantee.

So what are the new super rules?

• From 1 July 2022, regardless of what they earn, employees may now be eligible for Super Guarantee.
• The Super Guarantee rate has increased from 10% to10.5% (*Source: Australian Taxation Office).

New super rule 1: Superannuation Guarantee Rate increase

From 1 July 2022, the Super Guarantee rate to calculate super on payments employers make to employees has increased from 10% to 10.5%.

Employers will need to use the new rate to calculate super on payments they make to employees on or after 1 July – even if all, or a portion, of the pay period is for work that was carried out before 1 July.

Under the new Australian superannuation rules, the Super Guarantee rate will rise again – to 11% – on 1 July 2023. It will then continue rising 0.5% each year until it reaches its final rate of 12% on 1 July 2025.

New super rule 2: Removal of the $450 per month threshold

The second key new super rule is the abolition of the $450 monthly minimum wage threshold to qualify for employer Super Guarantee contributions.

Previously, employers only had to pay the Super Guarantee to employees who earned at least $450 in pre-tax income in a month. However, from 1 July 2022, the $450 per month eligibility threshold has been removed.  (Source: Australian Taxation Office)

This means that employers are now required to make super contributions for all their employees (including casual and part-time employees) – regardless of how much they earn.

An exception to this rule is for under 18s who work less than 30 hours a week (unless they are covered by a workplace agreement that states otherwise).

Contact us about the new superannuation rules 

The new Australian superannuation rules will impact employers in terms of how much superannuation they need to pay their employees – and to which employees.

It is critical that employers have clarity around the new super rules – and their commitment towards employees.

MBA Financial Strategists have been advising clients on a wide range of superannuation issues since 1985.

Our expert team is well-versed in understanding and advising on superannuation rules and can assist you – and your business.

To learn more about Australian superannuation rules and requirements, visit our comprehensive Superannuation: The Ultimate Super Guide.

Or, book an appointment with a financial adviser of your choice or call the practice on (08) 8357 3999 to make an appointment with a financial planner from the team.

* Source: Australian Taxation Office https://www.ato.gov.au/Business/Business-bulletins-newsroom/Employer-information/Get-ready-for-super-changes-from-1-July/