Are you prepared for the changes to your Superannuation?

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As of 1st July 2022 there are 2 major changes with regard to superannuation:

1.  The superannuation guarantee rate goes from 10% to 10.50%
This very simply means that as a business owner you will need to pay an additional 0.5% for each of your employee’s superannuation.

2.  The $450 eligibility threshold when paying superannuation has been removed.
Previously if your employees earned less than $450 per month, they did not need to pay super. With the new government announced amendments, all employees regardless of their package will need to pay 10,50% superannuation.

This excludes those under the age of 18 years old.

Although Xero and QuickBooks will automatically update the rate in the system it is advisable that you double check that it HAS been updated and that your employees wage sheets reflect this 0.5% accordingly.

What actions could you take as a business owner:

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If you have staff on special pay packages then check that this has been updated properly
If your staff don’t provide you with their choice of their superannuation fund, employers are able to review their stapled super fund through the ATO portal to get the information of the superannuation fund they are with.

If you as a business owner want to claim your June quarter superannuation as a tax deduction in the current financial year, then all superannuation payments must be made, paid and processed into the employee’s super fund before the 30th of June, so in order to do meet these timelines payments should be made by no later than 20th June 2022.

Want to know more:
If you are wanting to engage with a bookkeeper who is able to easily assist you with these amendments, I encourage you to reach out to Amber Business Support, I am your Business Accountability Mentor and would love to be part of your business journey!

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