From 1 July 2022, two important super guarantee (SG) changes will apply to your business. These are:

  • The rate of SG is increasing from 10% to 10.5%
  • the $450 per month eligibility threshold for when SG is paid is being removed.


What does this mean for you?

These changes mean that from 1 July 2022:

  • You will need to make SG contributions at the new rate of 10.5%
  • Employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.

ATO will be working with digital service providers (DSPs) i.e Xero & MYOB to make sure payroll software is updated on time.


What you need to do?

  1. Check that your software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022.
  2. If the removal of the $450 threshold means you’ll be paying SG for one or more employees for the first time, you’ll need to give them a Standard Choice Form.
  3. If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on ATO’s website for guidance on what you need to do next.  A stapled super fund is an existing super account linked to an individual employee.

Please call if you would like to discuss any of the above and the application to your own situation.


VJC Accounting 

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC for this purpose.