Payday Superannuation Overview

Starting from 1 July 2026, employers in Australia will be required to pay their employees’ superannuation guarantee (SG) contributions at the same time as their salary and wages. This change aims to ensure timely and consistent superannuation payments, enhancing the financial security of employees.

Key Details

1. Implementation Date:

   • The new requirement will take effect from 1 July 2026.

2. Payment Schedule:

   • Employers must pay SG contributions concurrently with salary and wages.

   • Contributions must be received by the employees’ superannuation fund within 7 days of payday to avoid penalties.

3. Super Guarantee Charge (SGC):

   • Employers failing to pay contributions on time will be liable for the SGC.

   • The SGC includes:

     • Outstanding SG Shortfall: Unpaid contributions based on ordinary time earnings (OTE).

     • Notional Earnings: Interest to compensate employees for late contributions.

     • Administrative Uplift: Additional charge for enforcement costs.

   • The SGC will be tax-deductible.

4. Small Business Superannuation Clearing House (SBSCH):

   • The SBSCH will be decommissioned from 1 July 2026.

   • Employers will need to transition to commercial payroll software solutions for superannuation payments.

5. SuperStream Updates:

   • Super funds must allocate or return contributions within 3 business days, down from 20.

   • SuperStream standards will be revised to support payments via the New Payments Platform and improve error messaging.

6. Single Touch Payroll (STP) Updates:

   • Employers must report both OTE and total super liability for each employee in STP, ensuring accurate SG identification.

     
     

Implications for Small Businesses

• Transition to New Systems: Small businesses will need to adopt new payroll software solutions to comply with the updated superannuation payment requirements.

• Increased Administrative Burden: The need for timely superannuation payments and accurate reporting may increase administrative tasks.

• Financial Planning: Businesses must ensure they have sufficient cash flow to meet the concurrent payment of wages and superannuation contributions.

Government Support

• The government will engage with small businesses to guide them through the transition to new systems and ensure they are prepared for the changes.

If you have any questions or need more details feel free to call us on 07 3876 6211.