Legislation update

Unlike 2021, where the super industry experienced some of the most significant legislative changes in its history, this year the changes are not as big, but still important, and may impact your employees.

Increase to the superannuation guarantee rate

Possibly the most significant change for employers is that from 1 July 2022, the superannuation guarantee (SG) rate will increase from 10% to 10.5%. SG has been legislated to increase each year by 0.5% to 12% by 1 July 2025. This will impact many of your employees, but less so for those receiving 17% or 14% contributions.

Removing the $450 per month minimum income threshold

The government will remove the $450 per month minimum income threshold to receive SG contributions. This means that if your employees earn less than $450 per month, from 1 July 2022, they will be entitled to SG contributions.

According to the government, this will allow an estimated 300,000 low-paid workers—63% of whom are women—to be eligible to receive mandatory employer super contributions.

Read a summary of other super rules changing on 1 July 2022.