Removal of the $450 monthly income threshold
Previously, employees needed to earn a minimum of $450 in gross income from one employer per month to be eligible for the Super Guarantee (SG). From 1 July 2022, however, this cap has been removed by the federal government, meaning employers will need to pay super for all employees over the age of 18, regardless of how much they work and earn in a month. Also, it’s important to remember that from 1 July 2022, super will be payable to employees under 18 if they work more than 30 hours per week regardless of how much they earn.
Increase of Super Guarantee from 10% to 10.5%
From 1 July 2022, the amount of Super Guarantee employers will have to pay to their employees increases from 10% to 10.5% of their eligible gross ordinary time earnings. The Super Guarantee is legislated to gradually increase by 0.5% each year until it reaches 12% in 2025.