From 1 July 2022, the base SGC rate increases from 10% to 10.5%, and the $450 minimum monthly earning threshold is removed. This means all payments are subject to superannuation for all eligible employees.
For our clients, this might mean you may need manually update the rate in your MYOB & XERO software.
MYOB has added a new calculation basis in your default superannuation guarantee pay item called “Minimum required rate.” For example, you will need to click Payroll menu>Pay items>Superannuation tab>Superannuation guarantee, to update to the minimum 10.5% required rate.
The 10.5% SG rate will be updated for all employees linked to the Superannuation guarantee pay item.
For more information click here.
In XERO payroll, if your employee has the Statutory Rate option selected, the new rate is automatically applied in pay runs with a payment date of 1 July 2022 onwards. If your employee doesn’t have the Statutory Rate option selected, you can review this in their Pay Template and manually update the rate if needed. More information on how to do this is here.