On 2 May 2023, the Australian Government announced the Payday Superannuation system, which is a requirement for employers to pay their employees’ super contributions at the same time as their salary payments. The contributions should be received by their employees’ superannuation fund within 7 days of payday. Otherwise, the employers are liable for the Super Guarantee Charge (SGC). This regulation will take effect from 1 July 2026 with Super Guarantee rate of 12%.
It can be argued that this new system of Payday Super could potentially help employers in creating a more streamlined payroll system and reduce business’s payroll liabilities. However, this could also mean that employers would have to make some adjustments in their system which can result in additional expenses.
More on Payday Super are explained on the ATO website, here.
Additionally, you find out more on SMSF Concessional Contributions on our page, here.
