Although previously in doubt, the expected increases to the Australian Superannuation Guarantee (SG) Rate appear set to increase as planned from 1 July 2021 by 0.5%, going from 9.5% to 10%, with the recently announced 2021 Federal Budget making no changes to the legislation.
Employers need to be prepared for the financial impacts and for the administrative processes involved as the 0.5% increases are set to continue each year until 1 July 2025 when they reach 12%.
As some employers provide superannuation at rates greater than the prescribed minimum, the update to superannuation rates is not automated in Sybiz Visipay. Instead, a
manual process to review and update Staff Types can be performed easily via the Lookups menu.
The ATO have not suggested that there will be any grace period for employers who fail to meet the new SG obligations on time and for the correct amounts.
The intention of the policy to increase superannuation is such that employees’ take-home wages should not be impacted due to the increase, however there may be a small number of cases where this will arise.
In either case, keeping your employees well informed of these changes is key. Consult your trusted business advisors about managing this process.
In addition to these rate changes, the Federal Budget also included proposed updates to the SG threshold amount, aiming to remove the current $450 per month income cap from 1 July 2022. If the legislation passes, it will mean that those on lower incomes will be more able to save for their retirement.
Tax rates will remain unchanged from those introduced in
October 2020 and employees may receive slightly higher tax refunds due to the tax rate changes applying for the full 2020/21 financial year but only implemented from October. Previously legislated changes to the Study and Training Support Loan (STSL, formerly HELP/ HECS) rates will be coming into effect on 1 July 2021.
With so many changes coming for payroll staff to manage this end of financial year, Sybiz will be hosting our annual
EOFY webinar to assist on Friday 11 June. Registrations for Sybiz customers are now open, with information covering end of year processes for both Sybiz Vision and Sybiz Visipay.
Full instructions on how SG rates can be updated in Sybiz Visipay are available on our website, alternatively, please contact your Sybiz Authorised Business Partner for further assistance.