Increase to Superannuation Guarantee Rate
Members are reminded that on 1 July 2022, the Superannuation Guarantee Rate increases from 10% to 10.5%.
The new rate will apply to any superannuation payments made to employees on or after 1 July 2022, even if some or all the pay period is for work performed before 1 July 2022.
Removal of $450 monthly income threshold
The Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Act 2022 (Amendment Act) commenced on 22 February 2022. The Amendment Act, amongst other changes, removed the monthly minimum income threshold for salary and wages to count towards the superannuation guarantee. The amendment is applicable from 1 July 2022.
So effective from 1 July 2022, the $450 monthly income threshold for superannuation eligibility will be removed which means that employees regardless of how much they earn will be eligible for superannuation payments.
The practical implication of this change is that some employees who previously would not have received superannuation payments for working a very minimal number of hours in a month will become eligible to superannuation payments.
Fair Work Commission - HIGA & RIA Superannuation Clause Variation
The Hospitality Industry (General) Award 2020 and the Restaurant Industry Award 2020 both currently provide a lower superannuation minimum income threshold provision of $350 in a calendar month. These are the only two modern awards with such a provision.
With the removal of the income threshold from the Superannuation Guarantee Act from 1 July 2022, the FWC has of their own motion varied these two awards to remove any ambiguity or uncertainty. The variation is simply to remove the reference to the $350 minimum income threshold. The variation will take effect from 1 July 2022.
Employees under 18 years of age
Irrespective of the removal of the monthly income threshold, employees who are under the age of 18 years will still need to work 30 hours or more in a week to be eligible to receive superannuation payments under the Superannuation Guarantee (Administration) Act 1992 (Cth) (Superannuation Guarantee Act).
Employers who have an Enterprise Agreement in place should check the superannuation provisions of their agreement.
Further information on eligibility can be obtained from the ATO website:
If any members have any questions about these changes, please contact the AHA|SA Workplace Relations Team.