Payday super legislation passed
The Federal Government’s payday super legislation passed both houses of Parliament. From 1 July 2026, all employers must:
- pay employees’ super at the same time as their wages and salaries
- super funds must receive the super guarantee contributions no later than seven business days after each payday
- the super guarantee charge (SGC) will change with tougher penalties if you do not pay super in full and on time
- if you hire a new employee, you have 20 business days (from the day after wages or salary are first paid), for the employee’s super fund to successfully get there first super contribution
- the Australian Taxation Office Small Business Super Clearing House (SBSCH) will close to all employers from 1 July 2026
- to be is considered an ”eligible contribution”, the Payday Super Framework requires super contributions to be received and able to be allocated within seven business days. It will be an employer who is responsible if the total seven business days timing is missed, with various penalties enforced, including:
- interest of 10% per annum
- a $20 administration fee for each employee with a super guarantee shortfall, and
- up to 200% additional penalty
The Australian Taxation Office has released a video and fact sheet to help employers, and will continue to add information, guidance and resources be their website to assist employers meet their obligations.
