Director ID Changes from 1 July 2027
New director ID reporting requirements commence from 1 July 2027. Company directors can use the time now to check that ASIC and director information is accurate.
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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.
New director ID reporting requirements commence from 1 July 2027. Company directors can use the time now to check that ASIC and director information is accurate.
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