As discussed here, one of the key superannuation announcements in the May 2021 budget was the removal of the minimum $450 threshold for super guarantee purposes. Currently, there is no obligation to make super contributions for employees who are paid less than $450 before tax (ordinary time earnings) in a calendar month.

From 1 July 2022, the $450 threshold will be removed, and super guarantee must be paid for all workers age 18 and over who meet the relevant definition of employee (noting this can include certain contractors).

In addition, in line with the scheduled increase timetable, the rate of super guarantee will increase on 1 July 2022 from 10% to 10.5%. The new rate of 10.5% will need to be used, together with the employee’s ordinary time earnings, to calculate the minimum super guarantee contribution the employer must make on behalf of the employee.

Importantly, for both of these measures, the additional contributions must be made for all contributions made from 1 July 2022 onwards, even if they relate to work done prior to 1 July 2022.

Phil Broderick
Principal
M +61 419 512 801 | T +61 3 9611 0163  
E: pbroderick@sladen.com.au           

Philippa Briglia
Senior Associate
T +61 3 9611 0173
E pbriglia@sladen.com.au

Jan Oh
Graduate Lawyer
T +61 3 9611 0158
E joh@sladen.com.au