Superannuation over summer
The holiday season is fast approaching, and your holiday casuals may now be eligible for super.
From 1 July 2022, you need to pay super for employees at a rate of 10.5%, regardless of how much you pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility has been removed.
Take Jane, for instance. She is a 22-year-old employee working a short-term job at a restaurant over the holiday season, and she works 23 hours a month, earning $430 before tax. In the past, holiday employees such as Jane would not be paid super as they earned below the $450 threshold. Now, Jane will be eligible for super pay on her ordinary time earnings at 10.5%.
This change doesn’t affect other eligibility requirements for SG. Workers who are under 18 still need to work more than 30 hours a week to be eligible.
For example, Anish is a 17-year-old employee working at a hotel over the holiday season. Anish works 32 hours weekly at the hotel and earns $800 before tax. He also works 5 hours at his local café, earning $150. As Anish worked more than 30 hours in one week at the hotel, his employer must pay him super on the $800 earned. As Anish works less than 30 hours a week at the café, he is not entitled to super from this employer. Likewise, Anish isn’t entitled to super for any weeks he works less than 30 hours at the hotel.
Check your payroll and accounting systems are up to date, so you are correctly calculating your employees’ SG payments.
