From quick guides to the latest trends, we write on the topics effecting your business.
10% SG Payments when do they start?
Selection of 9.5% or 10.0% SG rate for wage payments around 30 June 2021
As we flagged in our last blog, the SG rate will increase from 9.5% to 10%. For the many bookkeepers who handle payroll, it’s important to
note that the new rate of 10% is only applicable to any salary and wage payments made to workers on or after 1 July 2021 – this is
regardless of the period in which the services were performed by the employee. Following the release of that publication, we had some
members query that advice (we welcome your feedback). We went back to the ATO for confirmation, and the acting Commissioner of Taxation for
Super and Employer Obligations has now confirmed our suggested treatment.
This means if the pay period ends before 30 June, but the pay date falls on or after 1 July, the 10% rate applies on those salary and wages.
The date of salary and wage payment determines the rate of super guarantee payable, regardless of when the work was performed.
For example, if the work was done:
in June (or partly in June and partly in July) but employees were paid in July, the rate is 10% and contributions totalling 10% of
the employee’s ordinary time earnings for the September 2021 quarter must be made to the employee’s super fund by 28 October
in July but employees were paid in advance (before 1July), the rate is 9.5% and contributions totalling 9.5% of the employee’s ordinary time
earnings for the June 2021 quarter must be made to the employee’s super fund by 28 July.
STP 2 is due to be implemented on 01.01.2022
STP 2, ATO have released a new facts sheet on the expansion of STP 2 on 01.01.2020 . There's is nothing you need to do now. This is a
helpful reference on what will be changing.