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      2022/23 - Key Changes in Superannuation Rates and Thresholds

      What’s the update?

      With effect from Friday, July 01, 2022, at 12:00 AM AEST, as per the guidelines provided by ATO:

      1. Superannuation % will be hiked from 10.00% to 10.50%

      2. Superannuation Guarantee Threshold will be Removed

      3. Payroll Tax Rate will be increased back by NSW Government from 4.85% to 5.45%.

      Please be assured that we will carry out a system wide update to reflect this change on your behalf. We recommend you to refer the ATO guidelines by visiting the listed links:

      How does this affect me?

      1. Superannuation Guarantee Percentage

      The system calculates the member's superannuation at the time of "Generate Payslip" stage that is before the payroll finalization. That means any payroll run processing on or after 1st July will calculate super % as per 10.50%. Please refer to the below cases to understand the impact of a change onto your business:

      • Case 1: If you process your payroll run and generate the ABA file as on 30th June 22 then the system will calculate the super % as per 10.00%.

      • Case 2: If you process your payroll run on 30th June 22 and pay to members on 1st July 2022 then also the system will calculate the super % as per 10.00% because you have generated your payroll on 30th June.

      • Case 3: If you process your payroll run on any day on or after 1st July for the week ending of previous financial year then the system will calculate the super % as per 10.50% due to generation of payslip happened in the new financial year.

      2. Superannuation Guaranteed Threshold Removal

      As a part of the Government’s Treasury Laws Amendment Bill 2021, it has been decided w.e.f. 1st July 2022, the $450 superannuation guarantee threshold will be removed.

      As this Superannuation Guaranteed Threshold will be removed now, any income that the member is paid will have super applied to it.

      3. Increase in the Payroll Tax Rate

      In 2020, the NSW Government reduced the Payroll Tax Rate to 4.85% for the 2020/21 and 2021/22 financial years. Now, w.e.f. 1st July 2022, the Payroll Tax Rate is due to increase back to 5.45%.

      In case if you need any further information or would like us to stop the changeover of the above-mentioned changes into your database then please contact us before 30th June 22 3:00 PM AEST.

      Affected services

      The Entire OnHire Services will not be affected.