September 15, 2022
Local Accounting Firm

Changes to Super Guarantees and HELP Debts Coming This Tax Time

There are changes coming to HELP debt repayment rates and super guarantees in the new tax year. Do you know what they are? The HELP debt repayment threshold will go up and if you’re someone who earns less than $450 a month, then you’ll be eligible for super from July 1.

Employers take note! The $450 per month threshold for super guarantee eligibility has been scrapped.

The current exclusions (until 30 June 2022) for an employee to receive Super from their employer are if you’re:

  1. Paid less than $450 (before tax) in any calendar month – super does not have to be provided for that month.
  2. Non-residents paid solely for work done outside Australia.
  3. Under 18 years old and employed for no more than 30 hours per week.

As of 1 July, the first exclusion will fall away.

This means that, as of 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee's super fund regardless of how much the employee is paid. Employees must still satisfy the other super guarantee eligibility requirements.

The ATO will be working with digital service providers to assist in updating payroll and accounting software to be ready for this change.

Employers will need to check their payroll and accounting systems have been updated for super payments made after 1 July 2022 to ensure they correctly calculate their employee’s super guarantee entitlement.

HELP debt repayment rate updates have been announced.

The Government has updated the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2022-23 income year. The repayment rates are set year-by-year.

HELP debt includes any unpaid:

  • SA-HELP and
  • VET Student Loans (before 1 July 2019)
  • Indexation

When you do your tax return, the ATO will calculate your income for the year and tell you how much your compulsory repayment is. Compulsory HELP repayments are made via payroll from your employer. You can also make voluntary payments direct to the ATO.

HELP Repayment Rates and Income Threshold changes for the 2022-23 Year

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