Set to take effect on 1 July 2026, employers will be required to make SG contributions on the same day they pay salary or wages to employees, rather than on a quarterly basis. Each time an Ordinary Time Earnings (OTE) payment is made, there will be a new 7-day due date for contributions to arrive in the employee’s superannuation fund. If the payment is not received within 7 calendar days, employers will be liable for a new SG charge, subject to some limited exceptions.
There will be an updated SG charge framework, which aims to ensure employees are fully compensated for delays in receiving SG amounts from employers. Larger penalties will be imposed on employers who repeatedly fail to comply with the requirements.
Unlike the current SG charge, the new SG charge will be tax-deductible, although penalties and interest that accrue if the SG charge amount is not paid within 28 days will not be deductible.
To support this transition, several changes will be implemented, including a reduction in the deadline for superannuation funds to allocate contributions to 3 business days (from 20 business days). The SuperStream data and payment standards will be revised, and the Small Business Superannuation Clearing House will be retired from 1 July 2026.
Revised choice of fund rules will make it easier for employees to nominate their existing super fund when they start a new job, reducing unintended duplicate accounts and giving employers more timely and accurate details.
The Australian Taxation Office (ATO) will enhance its compliance measures by matching employer Single Touch Payroll (STP) data with superannuation fund reporting, allowing them to proactively identify late or missing payments.
Paying super on payday is part of the Government’s efforts to ensure Australians earn more, keep more of what they earn, and retire with more as well. This change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers.