Are your bookkeeping systems ready for the next changes to superannuation?
Upcoming and Proposed Changes to Super
On 1 July 2021 the Superanuation Guarantee contributions by employers increases from 9.5% to 10%.
Depending on the software that you use, your system may update automatically.
To check your Xero is ready for 1 July, go to Payroll / Employees / Pay template and make sure the super funds are set to "Statutory Rate".
It is important that you check now that your settings within your accounting software package are ready for 1 July.
Bookkeepers and payroll staff will also need take into consideration any staff that are on employment contracts which specify their total remuneration amount. These employees may take home less annual pay as the increase in super must be paid.
This is the first of five 0.5% increases proposed over the next 5 years, reaching 12 percent in 2025.
Proposed changes to the threshold for 1 July 2022.
The federal Government have proposed to remove the $450 minimum monthly threshold for super guarantee eligibility, so that all workers, no matter how many hours they work, will be entitled to receive super payments from their employer.
This proposed change is designed to benefit women particular who are a significant portion of the part-time and casual workforce. If this change is legislated it will also have a significant impact on many small businesses.
It is essential for small businesses to be prepared for the increase in super payments and the removal of the threshold. These costs need to be factored into your forecasting and budget planning.