Government follows through on SG $450 threshold scrapping.

The Australian Government is finally delivering on its 21-2022 budget promise to scrap the $450 per month superannuation guarantee threshold.

Currently, employers do not need to pay superannuation for employees who earn less than $450 per month. However, with amendments to the superannuation law introduced into Parliament on 27 October 2021, this ensures the removal of a 29-year-old structural discrimination in a bid to improve equality in the superannuation system.

The legislation comes into effect from 1 July 2022, which should provide plenty of time for employers to update their payroll systems to ensure Superannuation Guarantee contributions are calculated and reported correctly.

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