The maximum contribution based for employers to pay employee super has increased to $58,980 in the 2022 financial year. The contribution was $57,090 last year. It represents the limit on any employee earnings base in a quarter (ie superannuation guarantee of 10% does not apply after this amount).
Aspect Accountants and Advisors have been in contact with clients to discuss the STP reporting changes. You are required to be reporting through Single Touch Payroll (‘STP’) unless you have closely held payees, or you are covered by a deferral or exemption.
Small employers with closely held payees and micro employers have had changes to their reporting requirements from 1 July 2021 Ie there is a choice of one of the following three options;
- actual payments each pay day;
- actual payments quarterly; or
- a reasonable estimate quarterly.
Ref: ATO website, Changes to STP reporting from 1 July, 16 July 2021
The Division 7A benchmark interest rate for the 2022 tax year will not change from the 2021 tax year. The interest rate will be 4.52%. If you are unsure about the operation of Division 7A loans please seek advice from our office in West Perth.
Ref: ATO website, Division 7A benchmark interest rate, 6 July 2021
The superannuation contributions caps have changed from 1 July 2021, and have been indexed for the 2022 income year.
The concessional contribution cap has been adjusted to $27,500 (increased from $25,000).
Furthermore the non concessional contribution cap has been increased to $110,000 (previously $100,000).
The bring forward rules allow $330,000 over three years (previously $300,000).
If you intend to make superannuation contributions please seek advice from our West Perth office.
Ref: ATO website, Key superannuation rates and thresholds: contributions caps, updated 6 July 2021
The asset test considers the value of assets you own, to determine if you are entitled to age pension, and how much.
How does the asset test work?
The asset test combines your income and the worth of your assets. If your income or assets are above the threshold, your Age Pension payment will be reduced. Depending on the amount, you may not be eligible for Age Pension at all.