On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages.
This measure is not yet law.
Treasury and the ATO will engage with industry and stakeholders on these changes.
On 18 September 2024, the government announced further details, including:
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Contributions of super. From the start of the measure, employers will be required to pay their employees’ SG at the same time as their
salary and wages. They will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’
superannuation fund within 7 days of payday.
Payday is the date that an employer makes an ordinary time earnings (OTE) payment to an employee. Each time OTE is paid, there will be a new 7-day ‘due date’ for contributions, with some limited exceptions. -
Updated super guarantee charge. Where employers fail to pay contributions in full and on time, they are liable for SGC.
The SGC will be updated and consist of- Outstanding SG shortfall: any contributions that remain unpaid when the SGC is assessed. The shortfall calculation will be based on OTE, creating consistency with the calculation of SG contributions. Late contributions paid by an employer before they are assessed for the SGC will reduce the outstanding SG shortfall.
- Notional earnings: an interest component to put employees in the same position that they would have been had the contributions been received in full and on time.
- Administrative uplift: an additional charge levied to reflect the cost of enforcement.
- Once SGC is assessed, additional interest and penalties may apply if the SGC liability is not paid in full.
- The SGC will be tax-deductible, ensuring the income tax consequences for paying employees’ super are consistent.
- SBSCH decommission. The Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026. The improvement in payroll software solutions over recent years provides employers with cost-effective and higher quality options for paying superannuation contributions more timely and accurately. We will engage with small businesses ahead of time to guide them in transitioning to a commercial alternative that is fit-for-purpose for Payday Super.
- SuperStream updates. The deadline for super funds to allocate or return contributions will be reduced to 3 business days, down from 20. The SuperStream data and payment standards will be revised to allow payments made via the New Payments Platform and improve error messaging to ensure employers and intermediaries can quickly address errors.
- STP updates. Employers will be required to report in Single Touch Payroll (STP) both the OTE and the total super liability for an employee, ensuring the SG can be correctly identified.
More information on the design of Payday Super is available in the Treasury fact sheet.