On 1st April ADA Ltd published an article on the new Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Payday Bill) and the Superannuation Guarantee Charge Amendment Bill 2025 (SGC Bill). The article explains the major changes that impact all employers (small and large) and all employees. Here is a short summary of that article.
Main features of the new laws
- Superannuation payment timing: from 1 July 2026, employers must pay superannuation contributions within seven business days of each pay cycle, replacing the current quarterly payment requirement.
- Introduction of the Qualified Earnings concept: SG contributions attach to an employee’s Qualified Earnings, which include Ordinary Time Earnings (OTE), Salary Sacrifice Amounts, and other earnings currently captured under an employee’s wages for superannuation.
- Possible extensions: for the first year of implementation, employers may be able to avoid or reduce penalties associated with non-compliance with the new changes if they can demonstrate that they have rectified any superannuation contribution shortfall within 28 days from the quarter in which it was due.
- Single Touch Payroll (STP): employers must disclose each employee’s Qualified Earnings and associated SG contributions.
- High Income opt-out: high-income earners may be able to opt out of receiving super guarantee from their employer to avoid exceeding the contributions cap by applying for an SG employer shortfall exemption certificate.” Understanding the new Payday Super laws | Australian Dental Association
What is the new Superannuation Guarantee Charge?
The Superannuation Guarantee Charge (SGC) itself isn’t new, but its application will change with Payday Super. Instead of being calculated quarterly, the charge will apply if super isn’t paid on an employee’s payday. The interest component of the SGC will be calculated from the payday itself, rather than the start of the quarter, making it even more critical for employers to pay on time.” Understanding the new Payday Super laws | Australian Dental Association The SGC applies if the employer fails to pay the super on time and the penalty comprises the super shortfall, interest on that amount, and an administration fee, so exceeds the super payable.
It is advisable to contact your accountant and/or bookkeeper and/or the ATO for more information.
