What's changing for the 2022-23 financial year?

Here’s what you need to know about what’s changing for 1 July 2022:

Removal of the $450 per month superannuation threshold

Legislation to remove the $450 minimum monthly earnings threshold for superannuation contributions under the Superannuation Guarantee (SG) scheme recently passed both houses of federal parliament. This was passed as part of the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021.

From 1 July 2022 workers do not need to earn a minimum of $450 in a month to accrue superannuation under the SG scheme.

What do you need to do?

You will need to update the Superannuation Guarantee Eligibility Rule in FastTrack360. The Superannuation Guarantee Eligibility Rule is configured under Payroll Australia > Maintenance > Superannuation > Eligibility Rules.

To update the eligibility rule you will need to do the following:

end date the current rule validity period to 30/06/2022
add a new validity period starting 01/07/2022 and set the Minimum Monthly Earnings Threshold for the new validity period to a value of 0.

The start date of a new validity period must be later than the last payment date, as shown in the Superannuation Guarantee Eligibility Rule Entry screen. Therefore, it is important that you add the new validity period to take effect on 01/07/2022 well in advance to make sure no payments are processed after 30/06/2022 using the previous threshold value.

Click here for more information on how to configure the superannuation guarantee eligibility rules in FastTrack360.

Superannuation guarantee increase from 10% to 10.5%

The superannuation guarantee (SG) rate is changing from 10.0% to 10.5% on 1 July 2022. Any earnings paid on or after 1 July will be subject to the increased SG rate.

What do you need to do?

You will need to update superannuation contribution rate rules to allow for the change. If you pass on superannuation costs to your clients, you may also need to update bill oncosts to allow for the change. Click the icon below to download a document that will guide you through the process of updating superannuation contribution rate rules and bill oncosts to cater for the increase.

If you use custom bill formulas that reference a hard-coded bill oncost value for superannuation, you may need to review the formulas to ensure you are passing on the correct bill oncost amount to your clients from 1 July 2022.

The contribution rate change can be configured prior to downloading the tax tables for the 2022-23 financial year as the contribution rate is not dependent on tax rates/tax periods.

Tax Update

There are no legislated tax rate changes for the 2022-23 financial year and therefore the only tax update that will apply will be the annual indexed update to Study and Training Support Loan (STSL) repayment thresholds.

FastTrack will make updated tax rates for the 2022-23 financial year available for download via the Tax Maintenance Service once updated rates have been published by the ATO and have been tested. Further communication will be issued to inform of the expected date when the updated rates will be available for download.