Effective July 1, 2022, two significant changes to the Special Guarantee Contribution (SGC) will take effect. This will affect your business, namely:
- SG rate increased from 10 Present to 10.5 Present and
- The minimum income of $450 (or $350 for some prizes) per month will also be removed when you pay with SGC.
Hence, employees are indirectly rewarded for improved performance. Employers should consider this factor when budgeting for the upcoming fiscal year.
Employees under the age of 18 are also eligible for premium pay if they work more than 30 hours per week. For more information, please visit the ATO Super – When 30 Hours Count website.
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What do you want to do?
- Ensure that your software correctly calculates your employees’ SGC eligibility as of July 1, 2022. You may have noticed that payroll software providers such as XERO and MYOB have started providing information and updates about incorporating these changes.
- If the $450 minimum is waived, this means that you will have to pay the SGC to one or more employees for the first time. You will need to provide them with a standard Super Choice form to fill out.
- If your employees don’t choose an administrative pension fund for you, you may also be able to use a master savings fund—the existing super account associated with each employee.
Take the time to read here for more information from the ATO to understand the super changes and their impact on your business.
Numbers Pro will help you make these changes. If you need help with any of the above or you have general questions. Please click on Tax Agent in Craigieburn