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Super changes for the new year

Paul Rickard
30 June 2022

Tomorrow is the start of the new financial year and as always, there are changes to the super system. Here are five important changes that come into effect on 1 July.

1. Employers will now contribute 10.5% to super

The rate of employer contributions to super (the so-called ‘super guarantee levy’) is increasing from 10.0% to 10.5%. If you earn $100,000, your employer will now contribute $10,500 rather than $10,000 to your super fund.

Super is payable on salary and wages, including bonuses, but not overtime. Technically, it is not payable on amounts in excess of a salary of $240,880 ($60,220 per quarter) although many employers choose to pay it.

There is no change to the concessional contributions cap of $27,500. Concessional contributions are the employer’s 10.5% plus any amount you choose to salary sacrifice, plus any amount you contribute and claim a tax deduction for. If you are at risk of going over the cap of $27,500, talk to your employer – there is no upside in being over the cap.

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