The Australian Taxation Office (ATO) has issued a reminder to business owners regarding upcoming changes to superannuation, active as of July 1, 2022.
From the new financial year, there are changes to who is eligible for superannuation, as well as how much super businesses will need to pay staff.
The ATO says that from July 1, employees can be eligible for super guarantee — regardless of how much they earn.
“This is because the $450 per month eligibility threshold for when super guarantee is paid is being removed,” the ATO said in a statement.
The ATO announced that the super guarantee rate will also increase from 10% to 10.5% on July 1, 2022, with this rate legislated to increase to 12% by 2025.
Regarding this year’s increase, the ATO says business owners will need to use the new rate to calculate super payments for employees on and after July 1, 2022, even if some or all of the pay period is for work done before July 1.
If a business employs workers under 18 years of age, business owners are only required to pay super to them if they work more than 30 hours in a week.
“Make sure you update your payroll and accounting systems so that you continue to pay the right amount of super for your employees,” the ATO urged.
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More on business owner’s minds for EOFY
This isn’t the only change from the ATO this year, with a new approach to professional firm profits meaning many business owners have been put on notice.
As the new financial year approaches, it’s imperative that business owners stay on top of the changes, including the tax implications of government grants during the pandemic and natural disasters.
Here’s a list of guides covering what businesses should know — and do — before EOFY:
- What small businesses can claim on this tax year: COVID-19, natural disasters and more
- Have your staff been working from home? Here are your EOFY obligations
- Win-win: Why employee bonuses are a useful EOFY tool
- Doggy daycare, Ugg boots and Tim Tams: The six things you can’t claim this tax time
- Explained: How to prepay expenses this financial year to benefit your business
- Cheat sheet: Bad debts, and how to write them off
- Tax tips for SMEs: Super, stocktakes, insurance, and opportunities
- Checklist for SMEs: Maximising your tax deductions this EOFY