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Changes For Employers (Fy22-23)

With the beginning of the new financial year, things are changing for employers.

From the first full pay period in July 2022, minimum wages under the National Minimum Wage and under most awards have increased. The National Minimum Wage has increased by $40.00 per week, which amounts to an increase of 5.2% on the existing rate.

There are also changes to the super guarantee rates. From 1 July 2022:-

  1. the $450.00 super guarantee threshold has been abolished, and
  2. the super guarantee rate has increased from 10% in FY21-22 to 10.5% for this financial year.

What does this mean? Some employees who were previously ineligible for superannuation payments may now be eligible and all eligible employees must be paid super at a rate of 10.5%.

The super guarantee is set to rise to 12% by 1 July 2025, where it will remain constant for at least three years:-

Period

General super guarantee (%)

1 July 2002 – 30 June 2013

9

1 July 2013 – 30 June 2014

9.25

1 July 2014 – 30 June 2015

9.5

1 July 2015 – 30 June 2016

9.5

1 July 2016 – 30 June 2017

9.5

1 July 2017 – 30 June 2018

9.5

1 July 2018 – 30 June 2019

9.5

1 July 2019 – 30 June 2020

9.5

1 July 2020 – 30 June 2021

9.5

1 July 2021 – 30 June 2022

10

1 July 2022 – 30 June 2023

10.5

1 July 2023 – 30 June 2024

11

1 July 2024 – 30 June 2025

11.5

1 July 2025 – 30 June 2026

12

1 July 2026 – 30 June 2027

12

1 July 2027 – 30 June 2028 and onwards

12

Table 1: Increases to the general super guarantee from 1 July 2002 to 30 June 2028 and onwards.

If you are an employer, you should take care to ensure that you are paying the correct rate of super for this financial year and for each subsequent year as the rate rises. Even if an employment contract was signed years ago, when the rate was lower, you must still pay super at the rate that is current at the time the payment is made.

There may be consequences for employers who underpay super or who do not pay on time, including being hit with the superannuation guarantee charge. This charge is more than the super you would have otherwise paid to the employee’s fund and is not tax deductible.

OMB Solicitors is experienced in all aspects of employment law. If you would like advice on your super obligations or any other element of the employment relationship, please give us a call  Gold Coast Lawyers at (07) 5555 0000 or email us at [email protected].

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