Earning less than $450 per month and missing out on super? That’s about to change.

On 1 July 2022, superannuation is changing in a small but important way for around 300,000 Australians. This group of people will become eligible to receive superannuation guarantee (SG) payments from their employer. Here’s what you need to know.

What’s the current situation?

In order to be paid SG by an employer, you must be:

• 18 years or older, AND
• being paid $450 or more (before tax) in a month from a single employer.

Anyone earning less than this (even if they earn more in total from more than one employer) isn’t entitled to super payments.

What’s changing on 1 July?

On day one of the new financial year the requirement to earn at least $450 per month to be paid SG contributions will be removed. So there’s no longer a barrier stopping lower paid employees from receiving super.

What about casual and temporary workers?

This rule generally applies to everyone – full-time, part-time and casual employees, as well as temporary residents of Australia.

When will your first SG payment come through?

Any paid work from 1 July 2022 onwards should include superannuation at a rate of 10.5%.

But you may not receive SG into your account immediately, as employers are only required to pay super quarterly (some pay more frequently). The next quarter begins on 1 July and ends on 30 September. And employers don’t have to make the payment for this quarter until 28 October.

We suggest checking your firstonline member account regularly for your contribution – just head to ‘My transactions’ in the menu. If there’s no payment by the end of October, follow up with your employer or ask us for help. (Find out more about checking your super payments in this article).

Are the rules different for under-18s?

The $450 income threshold will be removed for everyone, but employees under age 18 must also work more than 30 hours per week to be eligible for SG. This hasn’t changed.

Why is the $450 super threshold being removed?

Anyone not being paid SG contributions is at a disadvantage, because their super account isn’t receiving regular contributions. By paying this group SG like everyone else, the super system becomes fairer, and everyone has a better chance of growing a retirement balance that can support them in the future.

Industry funds like First Super have been pushing for this change for years. That’s because we want the best outcomes for all our members – whatever you’re getting paid.

Check your super anytime

To check your super balance and payments anytime, log in to your firstonline member portal.

Need help with your super? Contact us now.