Important changes to the super guarantee

It is important that all labour hire providers and hosts are across upcoming changes to the superannuation guarantee rate from 1 July 2022.

Super guarantee contribution rate increased

A new super guarantee contribution rate of 10.5% will apply to all salary and wage payments made on or after 1 July 2022.

This rate is scheduled to progressively increase to 12% by July 2025.

Super guarantee threshold removed

From 1 July 2022, the $450 per month threshold for super guarantee eligibility will also be removed.  Employers will now be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid. This includes employees who are under 18 years of age if they work more than 30 hours for their employer in a week.

Make sure you’re ready for these changes

It’s important for employers to make sure they pay their workers the correct amount of super. Providers must comply with all relevant laws including superannuation and taxation laws as part of their labour hire licence conditions.

Failing to comply with obligations may result in penalties and/or a licence being reviewed, suspended, cancelled, or imposing conditions on the licence.

Employers can use the Australian Taxation Office’s (ATO) super guarantee contributions calculator to work out how much super to pay. Visit the ATO website for further information.