REMINDER: Occupational Superannuation increasing to 10.5% from 1 July 2022

Following on from last year’s increase in occupational superannuation to 10%, employers are reminded that the minimum rate for contributions will increase again, to 10.5%, from 1 July 2022. In addition, the commencement of the 2022-23 financial year will also see the minimum monthly threshold for superannuation contributions scrapped, for all employees aged 18 years old and over.

The 0.5% increase from 1 July 2022 is the second of five 0.5% increases programmed over the coming years, designed to achieve the ultimate 12% from 1 July 2025. Whilst it cannot be discounted that changes to the scheduled increases could occur at some future point, as it currently stands, compulsory super contributions are scheduled to continue to increase as follows:

Operative dateScheduled super contribution %
1 July 202210.5
1 July 202311
1 July 202411.5
1 July 2025 onwards12

Importantly, also from 1 July 2022, the minimum $450 monthly threshold for super contributions will no longer apply, meaning employers will be obliged to make occupational super contributions for all employees, regardless of what they earn per month. Employees aged under 18 years of age are generally required to work more than 30 hours per week to qualify for super contributions from their employer, and this stipulation will continue to apply beyond 1 July 2022.

Although further changes to compulsory superannuation obligations may occur at some future point, the increase to 10.5%, and the scrapping of the minimum monthly threshold, remain locked in from 1 July 2022.