Superannuation Increase & Payroll
10% Super Guarantee (SG) Rate applies to all payroll “paid” on or after 1st July so Payroll Software setup will have to be changed before any pay is processed to ensure the 10% rate is applied properly.
Ensure that all payroll systems are up-to-date and comply with Single Touch Payroll (STP) & Superannuation requirements: these changes may not happen automatically so confirm with your Bookkeeper or BAS Agent on these changes have been updated.
When processing a payroll be mindful the latest 10% rate is applied to Ordinary Times Earnings amounts paid after 1st July 2021, irrespective of when those amounts accrued.
If a payroll is paid after the 30th of June 2021 then the whole amount for that period (even if some of the payroll period is in the month of June) will incur the 10% super increase. Do not use both rates.
When Amounts are Accrued
The 9.5% rate applies to Ordinary Time Earnings salary paid up to 30th June 2021. The new 10% rate will apply to OTE/salary amounts paid from 1st July 2021.
Super Guarantee Contributions Act Section 19 stipulates that SG is payable on payment date rather than earned date.
Quarterly salary or wages base, for an employer in respect of an employee, for a quarter means the sum of:
the total salary or wages paid by the employer to the employee for the quarter; and
any sacrificed salary or wages amounts of the employee for the quarter in respect of the employer.
For more information: Superannuation Guarantee (Administration) Act 1992 (legislation.gov.au)