10% Super Guarantee (SG) Rate applies to all payroll “paid” on or after 1st July so Payroll Software setup will have to be changed before any pay is processed to ensure the 10% rate is applied properly.
Ensure that all payroll systems are up-to-date and comply with Single Touch Payroll (STP) & Superannuation requirements: these changes may not happen automatically so confirm with your Bookkeeper or BAS Agent on these changes have been updated.
When processing a payroll be mindful the latest 10% rate is applied to Ordinary Times Earnings amounts paid after 1st July 2021, irrespective of when those amounts accrued.
If a payroll is paid after the 30th of June 2021 then the whole amount for that period (even if some of the payroll period is in the month of June) will incur the 10% super increase. Do not use both rates.
When Amounts are Accrued
The 9.5% rate applies to Ordinary Time Earnings salary paid up to 30th June 2021. The new 10% rate will apply to OTE/salary amounts paid from 1st July 2021.
Super Guarantee Contributions Act Section 19 stipulates that SG is payable on payment date rather than earned date.
Quarterly salary or wages base, for an employer in respect of an employee, for a quarter means the sum of:
- the total salary or wages paid by the employer to the employee for the quarter; and
- any sacrificed salary or wages amounts of the employee for the quarter in respect of the employer.
For more information: Superannuation Guarantee (Administration) Act 1992 (legislation.gov.au)
Minimum Wage Increase
The Fair Work Commission has Announced a 2.5% Increase to Minimum Wages.
On 16th June 2021, the Fair Work Commission’s announced that the national minimum wage, and minimum wages set out in modern awards, will increase by 2.5%.
The increase applies to anyone who is paid minimum award wages or the national minimum wage, with the new national minimum wage will apply from 1st July 2021.
The wage increase takes effect from the first full pay run/period that starts on or after 1st July 2021.
Most employees are covered by an award but if employees are covered by a registered agreement, employers and employees need to check it to see whether this increase affects them. Also note, the increase doesn’t affect employees who already get paid more than their new minimum wage.
For anyone not covered by an award or an agreement, the new national minimum wage will be $772.60 per week or $20.33 per hour.
As per the Fair Work Commission’s announcement most awards will increase from 1st July 2021. Wages in the Retail Award will increase from 1st September 2021 and the rates in 21 other awards for some industries impacted by coronavirus restrictions the increase will be delayed until 1st November 2021.
Business Portal Retires End of July
The ATO are replacing the Business Portal with a new, contemporary system – Online Services for Business (OSfB)
If you use the ATO Business Portal you have until the end of July to switch to Online Services.
Online services for business is the new way to interact with the ATO online for all tax and super needs. It has been designed in collaboration with small businesses, for small business. Improved technology means the can now offer you a better digital service experience including a range of new features.
Accessing Online Services for Business (OSfB)
To access Online services for business you will need to sign in using myGovID. This is the same myGovID you used to log into the Business Portal. If you are new to online services, you will have to first set up your myGovID and then link it to your business in Relationship Authorisation Manager (RAM).
For more information see ATO – Online Services for Business.