In big news for casual/part-time workers, The Australian Federal Government has announced it will remove the $450 monthly earnings threshold. Employees will now be eligible for the Superannuation Guarantee of 10% of their relevant wages, regardless of their earnings.
From 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee’s super fund, regardless of whether an employee earns $200 or $2000 in the calendar month. Employees must still satisfy other existing super guarantee eligibility requirements. Employers are responsible in ensuring all super payments made after 1 July 2022 are correctly calculated for their employee’s super guarantee entitlements.
This change in law now means many Australian’s who previously earned below the monthly threshold, or work multiple jobs which didn’t each hit the minimum requirement, will pocket much more towards their retirement savings. With the Superannuation Guarantee expected to continue it’s rise to 12% in 2025, this shot in the arm is exactly what is needed to encourage employment in the fledgling retail and hospitality sectors.
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