There have been some changes effective 1 July 2022, in relation to the Superannuation Guarantee (SG) contributions:
- The rate of required employer contributions rises from 10% of employee earnings, to 10.5%. (Note that there are upper salary limits which apply to higher paid employees).
- The monthly $450 earnings threshold which applied to employees for whom the SG had to be paid has been abolished. This means that SG will now be payable for all employees, regardless of the level of their earning.
Superannuation Contribution Levels
Contribution levels remain unchanged this year and are as follows:
- Concessional (deductible) contribution limit - $27,500
- Non Concessional (non deductible) contribution limit - $110,000
- Non Concessional contributions can be boosted by the “bring forward” rule, which allows for up to 3 years of contributions ($330,000) to be made in the current year (subject to prior year contributions and super benefit cap rules).
- Downsizer contribution – Up to $300,000 can be contributed Non Concessionally by over 65’s who are downsizing and have resided in their family home for at least 10 years. This is in addition to the Non Concessional contribution levels noted above.
Please speak with your usual hmh contact on +61 3 9840 2200 if you have any questions in relation to Superannuation contribution levels.