Mar 16, 2022 Matthew Hung
Removal of the $450 super guarantee contribution threshold
In February this year the federal government passed legislation to enact previously announced changes to the superannuation system. One of these was the removal of the $450 super guarantee contribution threshold
The new law removes the $450 per month income threshold under which employees do not have to be paid the superannuation guarantee by their employer. While this measure is designed to improve equity in the superannuation system by expanding the scope of contributions, it will perhaps add a considerable administration burden on employers who employ casual staff for short periods.
Employers will need to ensure that they meet the superannuation choice and reporting obligations as well as payment requirements for employees who may have previously been outside the super system.
The changes are due to take effect from 1st July 2022. Talk to us if you want to find out more.
