Business owners are being reminded that from 1 July 2022 there will be changes to super eligibility and increases to the super guarantee rate, national minimum wage, award minimum wage, company fees and business name fees.
The Australian Government has issued a list of changes on its www.business.gov.au site to advise business owners and their tax agents in preparation of the changes.
The changes include:
From 1 July 2022 you will need to pay super for employees, regardless of how much you pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility is being removed. Learn more.
On 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%. The Norfolk Island transitional SG rate will increase from 6% to 7%. Learn more about the Super guarantee increase at the ATO site.
From 1 July 2022, the National Minimum Wage will increase by 5.2%, which amounts to $40 a week. The new National Minimum Wage will be $812.60 per week or $21.38 per hour.
The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022. This means if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday 4 July 2022.
The minimum award wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.
This means minimum award wages:
If you are covered by an award, award increases happen in 2 stages. Most awards will increase from the first full pay period on or after 1 July 2022. For some awards in the aviation, hospitality and tourism industries, the increase will happen from 1 October 2022.
In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission will increase company and business name fees from 1 July. Learn more about the company and business name fees increase.
Article by The Public Accountant