Changes to Superannuation for those under the age of 18

Changes to Superannuation for those under the age of 18

Changes to Superannuation for those under the age of 18

If your employees are under the age of 18 and work more than 30 hours per week for you, you will be required to pay them super starting July 1, 2022.

This is due to the removal of the $450-per-month threshold for super guarantee.

Let’s use Olivia as an example. She is 17 years old and earns $382 before taxes working a 32-hour week at her neighbourhood hardware shop once a month. She also works 6 hours a month as a barista at a nearby cafe.

Because Olivia works more than 30 hours per week at the hardware store, her employer will be required to pay her super starting July 1, 2022.

Olivia will not be eligible to super for her work as a barista because she does not work 30 hours a week. Similarly, Olivia will not be eligible for overtime if she works less than 30 hours per week at the hardware shop.

Check that your payroll and accounting systems have been updated as we get closer to July 1, 2022, so you can appropriately calculate your employees’ super guarantee payments.

On July 1, 2022, the ATO will update their online calculators and resources so that they are ready for you.

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