What Salon Owners need to know about changes to superannuation in 2022

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Posted June 6, 2022

Compulsory superannuation has stood in Australia for decades now, but it is not a static policy. There have been a number of changes to Superannuation over the years, most recently with the transition to Single Touch Payroll and steady increases to the Superannuation Guarantee.

The Superannuation Guarantee (SG) will again increase to 10.5% from 1 July 2022. It will continue to increase progressively by 0.5% each year until it reaches 12% on 1 July 2025.

The ATO have published a table outlining the superannuation guarantee percentages.
It’s important that salon owners stay up to date and stay informed on every change to superannuation, as failure to comply with these changes can incur significant penalties for salon owners.

When does the next increase take effect?

The next SG increase to 11% will take effect from 1 July 2023. The SG will increase progressively by 0.5% each year until it reaches 12% on 1 July 2025.

Removal of $450 per month threshold

In the last Federal Budget announcement, the Government removed the $450 per month minimum earnings threshold for SG contributions. This means that employees will be eligible for SG even if they earn less than $450 in a month.

Annual Wage Review

At the time of writing, the Fair Work Commission has not yet handed down their decision regarding the Annual Wage Review. The ACTU have proposed an increase of 5.5%.

HABA’s partners at Ai Group has proposed a modest wage increase of 2.5%. The proposed 2.5% wage increase takes into account the additional benefit provided by the 0.5% SG increase.

HABA members will be kept informed of the Fair Work Commission’s decision in due course. HABA is always working, advocating and representing salon owners at all levels of government, ensuring that your interests are represented in essential conversations.

Further advice or assistance

For further advice or assistance on this topic, or any workplace relations matter, please #AskHABA by calling the HABA Advice Line on 02 9221 9911 8:30am-5:30pm AEST Monday to Friday