As you might be aware, from 1 July 2022, the Superannuation Guarantee Rate will be increasing from 10% to 10.5%, as legislated by the Australian Government. The legislation also provides for a 0.5% increase until 1 July 2025 when the super guarantee rate reaches 12%.
The change will impact employers or employees based on your employment agreements.
For Superannuation Exclusive Salaries
As a business owner
You will be required to increase your employees superannuation payments with no impact on their take home amounts.
TIP: If you are using accounting software to manage your payroll, this should be automatically processed from the first pay run of the new financial year. If you calculate your superannuation manually, you will need to allow for this adjustment.
As an employee
You will not see any impact on your take home pay, as your employer will increase your superannuation separately.
For Superannuation Inclusive Salaries
As a business owner
We encourage you to make your employees aware that they will see a decrease in their take home pay from 1 July 2022, as their super will make up a greater proportion of their salary package.
TIP: Recalculate your employees’ gross pay from 1 July to reflect the change. It will also be important to review your July pay runs closely to ensure the changes are processed correctly.
As an employee
The increase in superannuation guarantee rate will make up a greater proportion of your salary package from 1 July 2022, therefore decreasing your take home pay.
If you have any questions on this Superannuation Guarantee Rate change or implementing the correct adjustments in your pay runs, please contact your Advisor.
We’re always here to help!
