360Private

Employers should be aware of some key changes to superannuation laws that will impact the calculation of employee superannuation entitlements.

Superannuation Guarantee Rate Increase to 10%

Employers in Australia are required by law to make regular contributions to their employee’s superannuation fund. The legislated Superannuation Guarantee (SG) rate is currently set at 9.5% of ordinary time earnings. The first increase to the SG rate will occur on 1 July 2021 and will see the contribution rate that employers are required to pay increase from 9.5% to 10%. This will then be followed by incremental half percentage point (0.5%) increases each year until the rate reaches 12 per cent on 1 July 2025.

Employer’s will need to adjust their payroll systems to ensure the contribution rate adjustment is reflected in remuneration arrangements for eligible employees. Failure to contribute the required amount to employee superannuation funds prior to the quarterly due dates could see penalties from the Australian Tax Office (ATO) for late or inaccurate payments.

Removal of the $450 Minimum Monthly Earnings Threshold

Included in the recent 2021 Federal Budget is the proposal to remove the $450 monthly minimum earning threshold.

Currently, employers do not have to pay superannuation to employees who earn less than $450 per month. This change, if legislated, will likely commence from 1 July 2022 and will require employees to adjust payroll systems and SG payments accordingly.

For more information about your employee superannuation obligations contact your Advisor at 360Private.

Recent posts

  • Increasing Our Online Payment Security

    Written by 360Private

    Published: 15 June 2022

      We are pleased to announce that we now offer the option to make payments to 360Private via credit card online or BPAY. You will note both options are displayed on our future invoices. When paying via credit card, you will click a link taking you to a secure NAB transaction page. It is important to be aware of cyber security risks, so if you are unsure of the source of an email, check that it is legitimate before making any online payments.  If you have any questions or require assistance, please contact our office.
  • New Super Opportunities From 1 July 2022

    Written by 360Private

    Published: 15 March 2022

      As 30 June fast approaches, our focus shifts towards ensuring strategies relating to managing taxation outcomes and superannuation are implemented before the end of financial year arrives.  However, it is also important to look ahead, with some superannuation contribution rules changing from 1 July 2022. These changes could create new opportunities which may benefit you.   The key changes from 1 July 2022 include: increasing the amount of personal contributions that can be made to superannuation for people aged 67-74* removing the requirement to satisfy a work test before making personal after-tax contributions and salary sacrifice contributions for those 67 to 74* reducing the eligibility age for making a downsizer contribution from 65 to 60 increasing the amount that can be released under the First Home Super Saver Scheme to use to purchase a first home, and removing the minimum monthly income threshold before an employer is required to pay Superannuation Guarantee on behalf of employees. * Contributions must be received no later than 28 days after the month in which the person turns age 75.
  • New COVID Support Package - Additional Round - Jan 2022

    Written by 360Private

    Published: 08 February 2022

     The South Australian Government has introduced various support packages for SA businesses impacted by the health restrictions put in place from 27th December 2021. A further package has been introduced in January 2022. Business Hardship Grant Eligible employing and non-employing businesses will be provided with once-off grants ranging from $2,000 - $8,000, depending on business arrangements. To meet the criteria the business must have:- A valid and active ABN and be operating in South Australia; Be registered for GST; Employ people in South Australia (not required if applying as non-employing business); Have an Australian grouped payroll of less that $10 million in the 2019-20 or 2020-21 financial year (not required if applying as non-employing business); and  Have a reduction of turnover of at least 50% during the defined restriction dates due to the impact of Covid-19 restrictions, being 10 January 2022 to 30 January 2022 (inclusive), compared to the relevant comparison period.
  • New Support Package for businesses impacted by COVID-19 restrictions

    Written by 360Private

    Published: 14 January 2022

     The South Australian Government has introduced various support packages for SA businesses impacted by the health restrictions put in place from 27th December 2021. New grants are available to eligible businesses across the state’s tourism, hospitality, gym/fitness and major event industries, as well as a general Business Hardship Grant. Business Hardship Grant Eligible businesses will be provided with a once-off $6,000 grant. An additional $2,000 will be available for eligible businesses that operate from a commercial premise located in the Adelaide CBD. To meet the criteria the business must have:-
  • Director Identification Number (Director ID)

    Written by 360Private

    Published: 05 November 2021

     Director Identification Number Following the recent introduction of Director Identification Number (Director ID) measures, you will be required to register for a Directors ID if you’re a Director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Island corporation. The new Australian Business Registry Services (ABRS) is responsible for administering the initiative. This Director ID is a unique identifier that will be given to each individual director, or any new directors, to verify their identity. The Director ID is a 15-digit number will assist in preventing the use of false or fraudulent identities, as well as making it easier to trace Director relationships across multiple companies.

Financial health check

Whether it be a query about superannuation, investments, insurance, mortgage or any other financial based questions, get 360Private to check on your financial health.

Client testimonials

We've relied on them for over 30 years

We have relied on the Team at 360Private for accounting and financial advice for over 30 years. Their sound strategy enabled our investments to perform well even through the Global Financial Crisis and we have benefitted from their knowledge of taxation law and superannuation. On a day to day level, we are always able to get prompt replies to any accounting matters relating to our business and everything is explained in language we can understand, rather than in "accountant speak". Our children now have their own businesses too and they also rely on 360Private.

- Sandra Haese, Director, Haese Mathematics

Read more ...

 

.

We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.