In the 2021 Federal Budget it was confirmed that the planned Australian Superannuation Guarantee (SG) Rate changes would go ahead as legislated, with a 0.5% increase each year until the 12% marker is reached in 2025.
The first increase took place on 1 July 2021, taking the national SG rate to 10%. The next incremental rate rise is intended to go ahead on 1 July 2022 to 10.5%.
In addition to this, the $450 per month minimum earning threshold is set to be removed from 1 July 2022, meaning those earning less will be able to save more towards their retirement. The requirement for those under 18 to work more than 30 hours in a week to attract super remains in place.
As they did in 2021, these changes incur financial impacts for employers and increased administrative processing for payroll staff. It is important to be prepared for the additional workload required to implement the new rates. As suggested previously, the ATO have not indicated any grace period for employers to adopt the new SG obligations, so it is important these are managed correctly and on time.
As some employers provide superannuation at rates greater than the required 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 (see below).
Keeping your employees in the loop about these changes and in a small number of cases, any effects to their take-home pay should be done well ahead of 1 July 2022. Speak to your trusted business advisor about how to best manage this process.
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Full instructions on how SG rates can be updated in Sybiz Visipay are available below, alternatively, please contact your Sybiz Authorised Business Partner for further assistance.
How to update superannuation in Sybiz Visipay
In Sybiz Visipay, you will need to update each staff type manually to ensure all employees are receiving the correct rate each financial year in line with the mandated increase. If you are currently setting the $450 earning limit you will need to zero out the Casual super monthly gross as well.
To update the superannuation settings for a staff type, select the File menu > Lookups > Staff Types > Edit Staff Type
, then click on Superannuation Guarantee tab. You will need to make the change after you have completed processing in 2021/22 and prior to processing your first pay in the 2022/23 financial year.
The financial years and corresponding superannuation guarantee rates are listed in the table below.
|1 July 2014 – 30 June 2021
|1 July 2021 – 30 June 2022
|1 July 2022 – 30 June 2023
|1 July 2023 – 30 June 2024
|1 July 2024 – 30 June 2025
|1 July 2025 – 30 June 2026