Staff Costs are going up from 1 July 2021
Happy End of Financial Year!
Something you may have not realised you need to include in your budget for 20-21 financial planning is increases to Superannuation payments to employees brought about by the recent federal budget announcements.
The below information will help you get to work on payroll to make sure you are paying the right amount to your employees from July 2021.
Changes to Superannuation Entitlements
Since Federal Budget 20-21 announcements there has been a removal of the minimum income threshold for employees and an increase in super payments.
The Minimum Super Cap has been removed
The minimum income threshold for super payments was previously capped at $450 per month for employees. The Federal Budget has announced that there will be no minimum income threshold on super payments moving forward.
What does this mean for you?
All staff payments will automatically calculate super based on ordinary wages in your accounting package. Full time, part time or casual staff members regardless of hours worked will be paid super on their ordinary earnings. Be ready for an increase in super payments for staff working minimal hours in the business.
The Super Guarantee Rate is Increasing
The Super Guarantee Contribution rate is currently equal to 9.5% of ordinary time earnings, on income up to $54,030 per quarter. This rate will be increased by 0.5% on 1 July 2021 to 10%.
Further increments of 0.5% will apply annually up to 2025‐26, when the Super Guarantee rate will be set at 12%.
What does this mean for you?
You need to remember to include this increase in your staffing budget for the 21-21 financial year.
Your accounting package will automatically calculate super at a rate of 10% from July 1st 2021.
Staff Wage Rises
Award Wage increases usually happen around 1 July each year , due to COVID 19 this information hasn’t been released yet for 20-21 financial year but we are expecting news to come soon
What does this mean for you?
Check your award on the 1st of June 21 for Award Wage Rate increases which include CPI.
Need more help? Click on the link below to ask your question
