From 1 July 2022, employees who earn less than $450 per month will be paid superannuation by their employer. This is removing the old $450 per month threshold for super guarantee eligibility.
The government announced the removal of the $450 per month threshold for super guarantee eligibility on the 11th of May 2022 as part of the 2021-22 Federal Budget. This expands coverage of the super guarantee to all eligible employees regardless of how much they earn.
This is great news for the approximately 300,000 Australians that the Association of Superannuation Funds of Australia (ASFA) estimates that will benefit from the removal of the threshold. ASFA also estimate that about 63% of this number are women.
What is superannuation?
Superannuation, or “super” is money that is put into a fund by your employer over your working life. This money is then used, or drawn down, during your retirement. Needless to say, the more money you have in super, the more comfortable your retirement.
Prior to 1 July 2022 your employer must pay super for your benefit if you are over 18, and earn more than $450 in a calendar month. From 1 July 2022 the $450 threshold is gone and super is payable to everyone regardless of your earnings.
How much super should I be paid?
The current superannuation guarantee amount is 10% of your earnings. On the 1st of July this will increase to 10.5% and will continue to increase inline with the table below until the super guarantee reaches 12% on 1 July 2026.
| Period | Super Guarantee |
| 1 July 2021 – 30 June 2022 | 10% |
| 1 July 2022 – 30 June 2023 | 10.5% |
| 1 July 2023 – 30 June 2024 | 11% |
| 1 July 2024 – 30 June 2025 | 11.5% |
| 1 July 2025 – 30 June 2026 | 12% |
Employers are required to contribute to your superannuation fund at least quarterly. This means every three months, more Aussies will be getting a superannuation top up once the threshold is removed.
The contribution quarters are:
| Quarter | Period |
| 1 | 1 July – 30 September |
| 2 | 1 October – 31 December |
| 3 | 1 January – 31 March |
| 4 | 1 April – 30 June |
Is my super being paid correctly?
If you think your superannuation is being paid incorrectly, the first step is talking to your employer. Ask how often they are paying your super and which fund they are paying it and how much. You can also call your superfund and ask for your last Member statement. If you are still unsure if it is being paid correctly, you can phone the ATO on 13 10 20 to ask more information.
How do I select a superannuation fund?
You need to provide your employer a form that tells them where you want your super paid. If your employer hasn’t given you a form, you can download one here.
All employers have a nominated super fund or “default fund” in case you don’t provide any details.
The ATO also provide a comparison tool so you can assess how your fund is performing with reference to other. You can access this here.
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