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Employees earning less than $450 a month will be eligible for compulsory superannuation payments from 1 July 2022 under new rules introduced by the Australian Government.
In the 2021-22 Federal Budget handed down on 11 May 2021, the Government removed the $450 per month earning threshold for eligible employees to receive Super Guarantee (SG) payments from 1 July 2022.
The Government said removing the threshold aimed to boost the retirement savings of part-time workers and women, many of whom may be working in insecure, part-time jobs.1
It said the reform improved the coverage of the superannuation system and would help to increase retirement savings for people with lower incomes, including women.
“The government is focused on improving retirement outcomes for women by increasing superannuation coverage and making our system fairer,” Minister for Women Marise Payne said.2
Before the change, employers paid SG on top of a wage or salary to an eligible employee earning $450 or more (before-tax) in a calendar month.
The removal of the threshold means you will pay super to eligible employees regardless of how much they earn in a calendar month.
The SG rate is based on ordinary time earnings salary, which is generally what your employee earns for ordinary hours of work, including commissions, shift loadings and allowances, but not overtime payments. More information about your super responsibilities as an employer.
Please note this announcement is yet to be legislated and may be subject to change. We will keep you updated on all proposals through our website.
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1. Australian Government, Budget 2021-22, Women’s Budget Statement, at budget.gov.au
2. Media Release, 11 May 2021, Prime Minister, Minister for Foreign Affairs and Women, Attorney-General and Minister for Industrial Relations, Minister for Social Services and Minister for Women's Safety, Minister for Superannuation, Financial Services and the Digital Economy, Budget delivering for Australian Women, at pm.gov.au
Australian Retirement Trust is the new fund name for the QSuper/Sunsuper merger.
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