There are a number of implemented and proposed changes to superannuation that your business and your bookkeeper will need to keep in mind in the near future.
Superannuation guarantee increase
Starting from 1 July 2025, the superannuation guarantee rate will increase from 11.5% to 12%. Make sure your accounting software is updated appropriately on July 1st so you remain compliant.
Payday Superannuation
In the 2023-24 Federal Budget the Government proposed a new measure to be implemented from 1 July 2026, where employers would be required to pay their employees’ super at the same time as their salary and wages.
This measure is not yet law and is subject to consideration by the incoming government. The previous draft legislation lapsed when the election was called. But it is anticipated that the new Government will introduce the bill or something similar again.
The aim of the legislation is to tackle the problem of unpaid super and to try to make paying payroll obligations smoother and simpler. More frequent payment of superannuation should allow employees to better track their entitlements and end up with higher retirement savings throughout their working life.
But the logistics for employers could prove to be quite a nightmare. Employers will need to pay Superannuation Guarantee contributions on payday, so they are received in an employee’s super account within seven calendar days of the payday.
Seven days is quite a small window, consider, for example, if you had recently onboarded staff or if a contribution rejects because of an employee changing their fund details. If an error occurs, the clock doesn’t reset, you are still working within the same seven-day deadline.
Businesses may also find this has quite an impact on their cashflow, as some will move from a quarterly payment to making weekly/fortnightly/monthly super payments.
Part of the measures includes redesigning the Superannuation Guarantee charge system and doing away with Superannuation Guarantee charge statements. Instead, an employer can complete a voluntary disclosure statement or the ATO will calculate any unpaid super and charge interest and penalties through an assessment.
On the positive, in the past superannuation guarantee contributions that were paid late were non-deductible to the employer, however under the new measures they would be deductible. Any penalties and interest after assessment of Superannuation Guarantee charge by the ATO will not be deductible.
Closing the ATO Clearing House
As part of the Pay Day Superannuation reforms, it is proposed that from 1 July 2026 the ATO’s Small Business Superannuation Clearing House will be closed.
If you are currently using the ATO clearing house you will need to consider moving to another provider. If you are using Xero, MYOB or Quicken for your accounting software, you can switch to using the clearing house each of those programs offer.
The ATO clearing house was free, so switching to a new provider may come with an increased cost.
Preparation will be important, once up and running Payday Super could prove to be more efficient. Reviewing your current payroll and onboarding procedures as soon as possible will be essential to transitioning smoothly to the new superannuation measures, as the legislation is finalised.
Published 3 June, 2025