Superannuation Guarantee increase
Hello I have just found this information from this link and I am querying it.
If you're processing a pay that includes dates in June and July, the applicable super guarantee rate is based on the Payment Date. For example: If the payment date is June 30 or earlier, the super guarantee rate for that pay should be 9.5%. If the payment date is July 1 or later, the super guarantee rate for that pay should be 10%. ................
Our last pay run for the financial year ends on 30th June 2021, but pay day for that period is 1st July 2021. We were on the understanding that 9.5% SG would still apply to that pay cycle but that is not what you have advised as able. Couuld you please confrm.
Regards
Hi discoverybay
Thanks for your post. The ATO advice is that payment date determines the applicable rate, regardless of the pay period. This would mean that a payrun with payment date of 1st July for a June pay period would be 10%.
The payment date ruling applies to all payroll transactions. You can find this on the ATO website:
If salary and wages are accrued in the current financial year (prior to 30 June) but paid in the following financial year (on or after 1 July), the full amount of the payment will be taxed at the following financial year's tax rates and included in the following financial year's payment summary.
If you do have concerns about this I recommend speaking to the ATO to clarify.
Please let me know if you need further help.
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