The Australian government has provided more details on its new “payday super” scheme, set to take effect from 1 July 2026.
What is Payday Super?
From July 2026, employers will need to make superannuation guarantee (SG) contributions at the same time they pay employees’ salaries or wages, whether that’s weekly, fortnightly, or monthly. Currently, employers only need to pay SG contributions on a quarterly basis.
Impact on Employers
This change means that all employers, regardless of size, will be required to pay SG contributions with each payroll. For smaller businesses, this could impact cash flow and add administrative responsibilities if they don’t have suitable payroll systems in place.
Impact on Employees
The aim of payday super is to improve transparency around super contributions and boost retirement savings. The government estimates that a 25-year-old on a median income could end up with around $6,000 more in retirement savings under this new system.
Additional Details
The government has provided further details on how the payday super system will work. Under the new rules, super payments must reach employees’ accounts within 7 days of payroll, except in cases of new hires or small, irregular payments. For new employees, SG contributions can be made within 14 days of their start date, while smaller or less frequent payments can be processed within 7 days of the next regular pay period.
Super contributions will still be calculated based on an employee’s ordinary time earnings (OTE), covering regular wages and salary but excluding overtime. Employers who miss these payment deadlines will continue to face penalties. Additionally, small businesses will need to adopt new payroll software to handle super contributions, as the ATO’s small business clearing house will close on 1 July 2026.
What’s Next?
The government is still finalising the payday super plan and is expected to introduce legislation soon. Further updates will be provided as more information becomes available.
The draft trust rules offer an election with no restructure and no stamp duty \u2014 but the same percentages apply to capital. What doctors with practices in a family trust need to weigh up before choosing between the election and the roll-over.
Treasury has released draft law for a minimum 30% tax on family trust income from 1 July 2028. Here is what it says, what is excluded, the two ways out, and what doctors with trusts should do now.
GST credits expire four years after the original BAS due date \u2014 with no ATO discretion to extend. If activity statements have fallen behind, here is what is still saveable.