Tax Alert - Superannuation Guarantee Increase from 1 July 2022

Lowe Lippmann Chartered Accountants

Superannuation Guarantee  increase from 1 July 2022

Increase to superannuation guarantee from 1 July 2022


The Australian Taxation Office (ATO) has recently reminded taxpayers of the scheduled increase to the superannuation guarantee  (SG) percentage, while some superannuation limits remain the same.


From 1 July 2022, Australians will be contributing more into their superannuation fund as the SG percentage will increase from 10.0% to 10.5% per annum.


Employers must pay Superannuation Guarantee contributions at the current rate of 10.0 per cent of an eligible worker’s earnings into a super account. As the transitional rates increase, the minimum contribution rate will rise to 10.5 per cent on 1 July 2022, and it will continue to gradually increase up to 12.0 per cent by 1 July 2025.

 

Concessional contributions are contributions that are made into your super fund before tax, including through salary sacrifice arrangements, and are taxed at a rate of 15 per cent in the superannuation fund.  The annual concessional contribution cap will remain at $27,500 from 1 July 2022.

 

Non-concessional contributions are contributions that are made into your super fund after tax is paid.  The annual non‑concessional contribution cap will also remain at $110,000 from 1 July 2022.


We must note that since 1 July 2018, members can make carry-forward concessional super contributions if they have a total superannuation balance of less than $500,000.  Members can access their unused concessional contributions caps on a rolling basis for five years.  Amounts carried forward that have not been used after five years will expire.


The first year in which you can access unused concessional contributions is the income year ending 30 June 2020.



Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.


August 26, 2025
How do we account for the costs incurred when acquiring an asset? When we acquire an asset such as property, plant and equipment, intangibles or inventory there are often significant other costs incurred as part of the purchase process, including delivery, stamp duty, installation fees. Whether we capitalise these to the value of the asset or expense them as incurred can make a significant difference to an entity’s reported position or performance. Since we have accounting standards for specific assets, the treatment can vary depending on the asset and the relevant standard. A summary of some common expenses and their treatment under four accounting standards has been included below. The four standards considered are: AASB 102 Inventories AASB 116 Property, Plant and Equipment AASB 138 Intangible Assets AASB 140 Investment Property.
August 12, 2025
What are contract assets and contract liabilities that arise under the revenue accounting standards? Deferred revenue, accrued revenue, revenue received in advance, contract assets, contract costs asset, contract liabilities and receivables are all line items we see in the balance sheet in relation to revenue. It can be confusing to understand what these terms mean and whether different words are being used for the same thing.  We have provided a guidance to these and similar terms to enable you to use them confidently and understand their meaning in a balance sheet.
August 6, 2025
Paid parental leave changes have now commenced As from 1 July 2025, the amount of Paid Parental Leave available to families increased to 24 weeks, and the amount of Paid Parental Leave that parents can take off at the same time has also increased from two weeks to four weeks. Superannuation will now also be paid on Government Paid Parental Leave from 1 July 2025, at the new super guarantee rate of 12%, paid as a contribution to their nominated superannuation fund. Parents will also benefit from an increase in the weekly payment rate of Paid Parental Leave, increasing from $915.80 to $948.10 (in line with the increase to the National Minimum wage). This means a total increase of $775.20 over the 24-week entitlement.
More Posts