Superannuation changes from 1 July 2022

10 June 2022

Members must note the changes to superannuation from 1 July 2022 as it will affect all businesses.

Superannuation guarantee rate increase

Workers entitled to superannuation payments will, from 1 July 2022, receive an increase in the rate of contributions from the current 10% to 10.5%. The superannuation guarantee legislation will increase super payments a further 0.5% each year until they reach 12% in 2025.

Concessional contributions cap

The concessional contributions cap remains unchanged at $27,500.

Removal of the $450 monthly earnings requirement

Currently, workers must earn $450 per month (gross) to be entitled to superannuation payments. From 1 July 2022, this requirement will be abolished.

Members will need to ensure that all workers who work for them receive superannuation from 1 July 2022, regardless of how short the engagement might be and what they earn.

Other changes

The eligibility for ‘downsizer contributions’ will be lowered, changes to the ‘work test’ for eligible workers, and the first home super saver scheme will also take effect. For advice on these matters, members should seek their own independent financial advice.