Important reminders for all employers about Super changes & Single Touch Payroll expansion

 

From 1 July, two important changes to Australia’s superannuation system took effect. 

We encourage all employers to take note of these changes (if you haven’t already), even if previously your employees weren’t part of the super system, as that may now have changed. 

 

 

In addition, Single Touch Payroll (STP) reporting has expanded, and if you have employees, you will need to start reporting extra information. 

The Superannuation Guarantee rate increased from 1 July 2022. 

On 1 July, the SG rate increased from 10% to 10.5%.

The new SG rate applies to amounts paid on or after 1 July 2022. 

This change is part of a scheduled, progressive annual increase that will see the SG rate increase to 12% by July 2025.

The scheduled rate increased and dates can be found at ato.gov.au/SuperRate, with the Norfolk Island transitional SG rate also increasing from 6% to 7% on 1 July.  

The removal of the $450 threshold  

From 1 July, the $450 per month minimum eligibility threshold was removed, meaning more employees may now be eligible for SG.  This change applies to salary and wages paid on or after 1 July 2022, not when the employee worked. 

Who is eligible

Now that there is no minimum threshold requirement for eligibility for SG, it’s important that you have reassessed your employee’s details and amended any contributions necessary to ensure that you are meeting your obligations. 

For example, you may now need to pay super for an employee who is under 18, if they work more than 30 hours in a week.

This change does not impact any of the other eligibility criteria for SG. 

Our Superannuation guarantee eligibility tool can help you determine if your staff are eligible for superannuation guarantee ato.gov.au/Calculators-and-tools/Super-guarantee-eligibility/

For more information on the $450 changes go to ato.gov.au/superforemployers.  

 

Employers transitioning to STP Phase 2 reporting

Single Touch Payroll (STP) reporting has been expanded; this is known as STP Phase 2. If you have employees, you will need to start reporting extra information to us each time you run your payroll. 

When you can start Phase 2 reporting depends on when your payroll product is ready, if an employers provider has a deferral, this covers them. Many products are ready now with more becoming available over the next few months. If you have not already started Phase 2 reporting, make sure you ask your provider when their product will be ready if you do not already know and have a plan in place to start STP Phase 2 reporting. 

As an employer, it is important that you are across the changes required, and you are getting ready to start Phase 2 reporting. 

For more information, visit ato.gov.au/stp2. We also have resources to help you understand the changes, available at ato.gov.au/stpresources. This includes new checklists, a factsheet, and a detailed guide. 

You can also seek the advice of your tax or BAS professional or payroll provider.

More information on your tax and super obligations as an employer can be found at ato.gov.au/employees.  

 

 

 

Bio: Michelle Allen is Assistant Commissioner, Risk & Strategy – Employer Obligations at the Australian Taxation Office (ATO). Her role involves supporting employers to understand their tax and super obligations throughout the employer lifecycle.