The 2021/2022 Federal Budget released on Tuesday, 11 May 2021 included an announcement that the Government will remove the current $450 per month minimum income threshold, under which employees do not have to be paid the superannuation guarantee by their employer. This means employee’s earning less than $450 a month (or $350 per month where the Hospitality Industry (General) Award 2020 applies) will begin to receive SG payments. The measure will have effect from the start of the first financial year after Royal Assent of the enabling legislation, which the Government expects to have occurred prior to 1 July 2022.
From 1 July 2021 the Super Guarantee (SG) rate is rising to 10%. This is an increase of 0.5% on the current minimum of 9.5% or ordinary time earnings.
Our platinum partner Intrust Superannuation has further information available HERE on this year’s increase and the legislated increases to the SG rate in the coming years.