Preparing for Payday Super
The Government’s upcoming Payday Super reform, set to take effect on 1 July 2026, will mark a significant shift for employers by requiring them to pay superannuation contributions on payday, rather than quarterly.
Please note:
- Employers face daily interest on unpaid super
- Employers must switch to modern payroll solutions to meet new payday super requirements
- The ATO’s Small Business Superannuation Clearing House (SBSCH) will be retired on 1 July 2026.
Under the new system, employers will be required to make Superannuation Guarantee (SG) contributions within seven calendar days of paying their employees’ wages. Failure to do so will result in immediate penalties, including a new SG charge that carries daily interest on unpaid super. The general interest charge for unpaid super, currently at 11.36% (July – September 2024 quarter), will apply on a compounding basis from the day after the due date, further incentivising timely payments.
Employers who fail to meet these obligations will face larger penalties, especially if they are repeat offenders. The Australian Taxation Office (ATO) will have enhanced tools and visibility, allowing it to proactively identify missed or late payments through Single Touch Payroll (STP) data, ensuring non-compliance is addressed swiftly.
This reform will empower employees to monitor their super entitlements more closely and take action against any instances of unpaid super by reporting to the Fair Work Ombudsman or the ATO.
In a move that reflects the evolution of payroll solutions and the increasing need for efficiency, the ATO’s Small Business Superannuation Clearing House (SBSCH) will be retired on 1 July 2026. Employers, particularly small businesses, will be required to transition to more modern, fit-for-purpose payroll solutions that facilitate the new payday super requirements. The ATO will work closely with small businesses during the transition to ensure they are supported in adopting suitable alternatives.
This reform is expected to enhance both retirement savings and superannuation system efficiency while creating a more accountable and transparent environment for employers and employees alike. This change is part of the broader Securing Australians’ Superannuation Package, aimed at tackling unpaid super and ensuring more dignified retirements for workers.
At Carrick Aland, we know that running a business is challenging enough without the added stress of payroll compliance. We help businesses and farms across Queensland manage their employer obligations with ease. Our goal is to allow you to focus on what matters most – growing your business. For payroll help and compliance, please contact Carrick Aland’s Business Books team on 07 4669 9800.
