Changes to employee superannuation every business owner needs to be aware of
Changes to employee superannuation every business owner needs to be aware of.
Effective 1 July 2022 superannuation increases from 10% to 10.5%.
This might not sound like much but it can very easily add up across your payroll.
More importantly is a change to the lower threshold. At the moment, if an employee earns less than $450 (gross) per month, they don’t get paid superannuation. This is being removed, which means that all employees regardless of income receive superannuation. This will mainly impact school age workers and casual workers who only work a few hours a week.
Once again, it doesn’t sound like much but it can have a big impact on your business.
Two important questions you need to ask yourself:
- Does this impact my business?
- Am I setup with the correct payroll systems to account for these changes?
In the coming weeks we will be contacting all our clients who are impacted, and let them know what needs to be done to remain compliant.
The biggest question no one has considered so far is:
Can your business afford the increase, and what impact does this have on your net profit?
Do you need to adjust your income prices to offset the increased expenses? Do you need to find savings as a result?
We can prepare a cashflow forecast for you to easily see the direct impact on your business.
From there, we can discuss strategic options to implement into your business to ensure these superannuation changes don’t impact your business negatively.
Book in a complementary 5min chat with Kiel to discuss how these changes are going to impact your business.