1 JULY 2022 CHANGES TO SUPERANNUATION OBLIGATIONS
Despite various speculation over recent years regarding superannuation, the government has not moved to stop the legislated increase in superannuation to 10.5% from 1 July 2022 this year, from its current level of 10%.
Under the Superannuation Guarantee Charge Act 1992, further increases are timetabled as follows:
Employers need to review their employment contracts, enterprise agreements, ordinary time earnings and SGC obligations using the ATO SGC Checklist.
$450 Superannuation Threshold Abolished from 1 July 2022
Pre-July 2022, employers did not need to pay superannuation for employees who earn less than $450 per month, but that is set to change from 1 July 2022.
Now, all employers must pay superannuation guarantee contributions on all earnings, no matter how little an employee earns each month.
In August 2020, the Senate passed legislation driven by the Federal Liberal government that prevents unions from negotiating enterprise bargaining agreements that compel employees to contribute to a specific superannuation fund. The legislation is part of a wider agenda by the government to restrict the predominance of industry super funds, many of whom supply unions with a regular and significant income stream.
The Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019, which took effect from 1 January 2021, applies to new workplace determination and enterprise agreements.
Any contribution under the Enterprise Agreement must comply with the minimum statutory superannuation employer contribution obligations. Employers should not assume the Agreement contribution complies with their minimum obligations. Even the high union collective agreement contributions must be monitored to ensure compliance.
For queries about superannuation or other employment questions, please contact Dean Cameron at Workforce Advisory Lawyers – We Know Employment Law on 1300 WAL LAW, 0417 622 178 or via email to firstname.lastname@example.org
Disclaimer: This information is provided as general advice on workplace relations and employment law. It does not constitute legal advice, and it is always advisable to seek further information regarding specific workplace issues. Liability limited by a scheme approved under professional standards legislation.