New legislation is removing a general exclusion to superannuation guarantee liability for an employer.  

Currently, and until 30 June 2022, the superannuation rules state that a superannuation guarantee is payable for employees if they are paid $450 or more (before tax).  

From 1 July 2022, employers will be required to make superannuation guarantee payments for employees who earn less than $450 in a calendar month. This rule originated as a 2021 Federal Budget announcement. 

This will come into effect from the quarter beginning on or after 1 July 2022. 

Who is Eligible? 

The following employees will be eligible: 

• full-time, part-time or casual employees

• employees receiving a super pension or annuity while working (includes employees on transition to retirement)

• an employee who is a temporary resident, such as a backpaper or holiday maker

• company director

• a family member working in your business

Additional eligibility rules apply for certain employees.

What about employees who are under the age of 18? 

The rules differ for employees who are under the age of 18.

You must pay super for an employee under the age of 18 years if:

•  they work for you for more than 30 hours per week

• you pay them $450 or more (before tax) in wages or salary in the calendar month

Is super payable for contractors? 

You must pay super for contractors if:

• you pay them mainly for their labour

• you pay contractors $450 or more (before tax ) in a calendar month

This will be the case even if the contractor quotes you an Australian Business Number (ABN).

Payroll Providers 

If you are using a payroll software provider, they will most likely incorporate this change within their software. Payroll settings will need to be checked and updated.

Reach out to your software provider for more information.


Please contact us to find out more about the new employee superannuation rules. The team at EMspire Advisory are experienced accountants, bookkeepers and tax agents in Sydney and would like to help you create, grow and succeed in business. 

Please note that this information is not specific and is general in nature and cannot be relied upon as advice. Please contact us for specific advice for you and your circumstances.