The federal government recently passed a legislation in respect of the $450 a month wages threshold before an employer is required to pay superannuation. Formerly, employers were only required to pay superannuation for employee wages if the employee earns more than $450 a month.

The Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2021 effectively removes the threshold. From 1 July 2022, all employers will have to contribute to their employees’ superannuation regardless of their employees’ monthly salary of wages.

The superannuation guarantee rate will also increase to 10.5% from 1 July 2022, up from 10% currently. This means more employees will be entitled to superannuation payments from their employers, and with an increased rate.

What happens if you cannot pay superannuation

If you have unpaid superannuation and are unable to keep up with payments, you should speak to us. The Australian Taxation Office (ATO) can issue director penalty notices to directors, essentially making them personally liable for the company’s superannuation debts.

There are ways that you, as a director can avoid being personally made liable for your company’s superannuation debts via the director penalty notice regime. The key is to get professional advice, act early and be proactive in engaging with the ATO.

Contact us for assistance

The team at Pearce and Heers have decades of experience in assisting businesses with unmanageable debts, including unpaid superannuation. Contact us today at our Brisbane or Gold Coast offices for a free no obligation consult.