From 1 July 2022, the $450 superannuation guarantee minimum monthly threshold will be scrapped.
With this update, approximately an additional 300,000 people will become eligible for super contributions, providing a super boost for low-income earners.
The bill removed the monthly income threshold and was passed in Parliament last week.
From 1 July 2022, all employers must pay superannuation guarantee contributions on earnings below $450 a month which means low-income earners will be eligible for super no matter what they earn.
The Federal Government announced it would scrap the $450 threshold in last year’s federal budget, handed down in May. However, the legislation was delayed and was considered in the final week of parliamentary sitting for 2021, then picked up earlier this year.
The threshold, currently in place until 30 June 2022, can also impact an employee who earns more than $450 in a month across multiple part-time or casual jobs.
Read the announcement on the ATO website.
Definitiv will be updated to accommodate this change by 1 July 2022.