superannuation contribution threshold

Removal of Superannuation Contribution Threshold

From 1 July 2022, employers need to make super guarantee contributions to eligible employees’ super funds regardless of how much an employee is paid. This removes the previous requirement for employees to be paid at least $450 per month for the employer to be required to pay superannuation.

The Fair Work Commission has also removed the requirement under the Hospitality Award and Restaurant Award for workers receiving over $350 per month under these Awards to receive superannuation payments, following the Australian Government’s decision to remove the $450 per month super guarantee threshold from 1 July 2022.

In addition, superannuation guarantee payments have increased to 10.5%.

Employers should review their superannuation arrangements with respect to casual employees and those who were previously under the $450 per month threshold to make sure they are paying superannuation and ensure all employees are being paid at the increased rate of 10.5%.

If you have any questions regarding this or any other employment related matters, please contact the team at TLB Law & Co.

IMPORTANT NOTICE – The information contained in this article is not intended to be comprehensive. It is general in nature and is not intended to be used as a substitute for legal or other professional advice. You must seek specific professional advice tailored to your personal circumstances before taking any action based on this article.

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