The manner in which we manage our superannuation is going to be altered. The change to Payday Super begins 1 July 2026. This is because the old quarterly cycle is being phased out of existence; you will be required to make super payments after paying wages.
This change is only 3 months away so take action now. You will need a complying software package.
The 7-Day Rule: Contributions must reach an employee’s fund within seven business days of paying “Qualifying Earnings.” This rule applies to both standard employees and eligible contractors.
Infrastructure Changes: The ATO Small Business Super Clearing House will be shut down on 1 July. It is high time to identify alternative ways of paying and make sure your Single Touch Payroll (STP) software is prepared to meet new reporting requirements.
Stricter Compliance: The revised Superannuation Guarantee Charge (SGC) will be used on the late payments. Although the SGC will be tax-deductible, the extra administrative uplifts and interest payments ensure that payments are very timely.
What to do now? Check the existing cash flow plans and fix any error messages that keep occurrences in your super reporting. The reason is that a proactive preparation will put your business in the state of readiness to the new era of payroll.
