|Recent changes to super are coming into effect, which will impact your business and employees.|
|Super Guarantee Contributions |
From 1 July 2021, the amount of Superannuation Guarantee Contributions (SGC) that employers have to pay on their employees’ wages is increasing from 9.5% to 10%. As an employer, you will need to ensure that your payroll systems are updated from 1 July.
Superannuation Contributions Cap increases
From 1 July 2021, the annual concessional contributions cap will increase from $25,000 to $27,500. This includes SGC, salary sacrifice, and personal contributions made by employees before tax. See the ATO website for more information about concessional contributions. The non-concessional contributions cap will also increase from $100,000 to $110,000. See the ATO website for more information about non-concessional contributions.
Your Future, Your Super compliance
The Your Future, Your Super Bill is yet to be passed into law, however is proposed to become effective at 1 July 2021. It is designed to benefit super fund members and will affect employers’ compliance requirements in the following ways: you will be required to identify whether a new employee has a stapled fund through the ATO, you must make super contributions to the new employee’s stapled fund; or if you can’t identify a stapled super fund through the ATO, you must make contributions to your default fund (only once this is confirmed by the ATO).
What this might look like for you
Super changes in the 2021-22 Budget, effective 1 July 2022
A number of changes to super were included in the federal government’s 2021-22 Budget and intended to be in place for 1 July 2022. Some key changes include to:
- Abolish the threshold of $450 a month to receive compulsory employer contributions
- Remove the work test for those between 67 and 74 to make salary sacrifice and non-concessional contributions
- Expand the First Home Super Saver Scheme allow access to $50,000 in super voluntary contributions
- Reduce the age to make downsizer contributions from 65 to 60