Super Guarantee Changes
If you are a business with employees, from 1 July 2022 two important super guarantee (SG) changes are happening and will apply to your business.
The SG rate is increasing from 10% to 10.5%
The SG rate has been 10% since 1 July 2021. From 1 July 2022, it increases to 10.5% and has been legislated to rise incrementally each year until it reaches 12% in 2025. This increase means changes to your payroll and the amount of super you’re expected to pay your workers.
The $450 monthly threshold is being removed
This means all payments are subjected to superannuation, regardless of how much your employees earn. You may have to pay SG for the first time for some or all of your employees. If so, you’ll need to provide them with a Superannuation Standard Choice Form.
Xero and MYOB both are automatically making these 2 changes within your online software files. Just remember that with MYOB, you need to be on the latest version of MYOB to have these automated updates apply. However, please ensure you check that your software is updated correctly come 1 July 2022.
Fair Work Commission (FWC) Annual Wage Review & Increase
Following the Annual Wage Review 2021-22, the Fair Work Commission (FWC) has made 2 announcements:
National Minimum Wage Increase
From 1 July 2022, the National Minimum Wage will increase by $40 per week, which amounts to an increase of 5.2%. The new National Minimum Wage will be $812.60 per week or $21.38 per hour. The National Minimum Wage applies to employees not covered by an award or registered agreement.
Award Minimum Wage Increase
Award minimum wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and is based on a 38-hour week for a full-time employee.
This means minimum award wages:
The FWC expect to have the new rates updated and published on their website come 1 July 2022. However, the award increase will happen in 2 stages. Most awards will increase from the first full pay period on or after 1 July 2022 and for some awards in the aviation, hospitality and tourism industries, the increase will happen from 1 October 2022. Click here to find out more about the affected awards.
With these staff costs rising and businesses still recovering from the COVID pandemic, we understand this can be a very difficult time for many business owners. If you require any guidance or support through this period, we encourage you to reach out to the team at HQB.
– Catherine Stojcevska
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.