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As of 1 July 2022 in Australia, all employees are eligible for the Superannuation Guarantee (SG), regardless of income (removing the AUD $450 per month eligibility income threshold). For companies with employees under the age of 18, the SG is only payable to individuals who work a minimum of 30 hours per week. Furthermore, the SG rate increased from 10% to 10.5% on 1 July. We will see 0.5% increase in the SG each year through to 2025 when it reaches 12%. It is important for organisations to check in with their local Payroll provider to ensure they are across these changes.
We are also currently seeing relatively low rate increases for Private Health Insurance in Australia as part of the 1 April 2022 rate reviews. The average rate increase is currently sitting between 2-3%, which is well below previous years, and several leading providers such as Bupa, Medibank, and GU Health have stated their intention to either delay increases or extend slight increases into October 2022 as part of this year’s review. A key reason for this year’s low rate increases is the widespread cancellation and/or delay of elective surgeries during Covid’s peak. In addition, lockdowns and Covid-related concerns meant members were not utilising their extras cover for treatments (e.g., dental, vision, and physiotherapy) at pre-pandemic levels. This resulted in increased profits for health providers who are now passing some of their savings back to consumers.
Head of Client Service - Global Benefits
