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From July 2026, employers must make super contributions at the same time as wage payments. Get ahead with our guide on ensuring timely and compliant super paymentsIn the fast-paced world of business, employers juggle multiple responsibilities, but ensuring timely superannuation payments must remain a priority. Compliance with super obligations is not just about avoiding penalties; it’s about fostering trust and demonstrating commitment to your employees' financial well-being. Understanding payday super rules can help streamline your payroll process and ensure your business operates smoothly and confidently.
Compliance Requirements and the July 2026 Changes:
Superannuation guarantee (SG) contributions are typically required to be paid at least quarterly. However, many employers opt to make contributions more frequently, aligning them with each pay cycle. This approach can simplify tracking and reduce the likelihood of missing deadlines. According to the Australian Taxation Office (ATO), employers must pay a minimum of 11% of an eligible employee's ordinary time earnings (OTE) into their super fund. This percentage ensures employees’ super balances grow consistently, preparing them for a secure retirement.
What’s Changing in July 2026?
Starting from 1 July 2026, a significant change will come into effect. Employers will be required to make superannuation contributions at the same time they pay salaries and wages, effectively ending the practice of quarterly payments. This shift aims to improve employee financial security by ensuring super payments are made more promptly, thus reflecting their earnings more accurately and avoiding delays. Employers should begin preparing for this change by assessing payroll systems and making necessary adjustments to accommodate more frequent payments.
Failure to comply with these requirements can lead to Superannuation Guarantee Charge (SGC) penalties. Unlike regular super contributions, SGC penalties are not tax-deductible, and they come with administrative costs and potential reputational damage. Therefore, ensuring compliance is not just a legal obligation but also a financial safeguard.
Common Pitfalls Leading to Non-Compliance:
Even well-meaning employers can find themselves on the wrong side of super compliance. Some common mistakes include:
Benefits of Aligning Super Payments with Payday:
While the law will soon mandate same-day payments, aligning super contributions with regular payday cycles ahead of the changes offers several benefits:
Action Steps for Employers:
What You Need to Do
Ensuring timely super payments benefits both employers and employees, fostering a culture of transparency and trust. By understanding your obligations and taking proactive steps, you can avoid the pitfalls of non-compliance and maintain a healthy relationship with your workforce. If you need assistance managing your super obligations, the team at RJS is here to guide you through every step of the process, ensuring compliance and peace of mind.
For tailored advice on superannuation compliance and preparing for the upcoming changes, contact our RJS experts today. We offer comprehensive services to help businesses navigate their obligations smoothly and effectively.
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.