Important changes apply to paying employees superannuation from 1 July 2026. We’ve provided a summary below to help you prepare now to be ready.

Key Changes and Implications – An Overview of the Act

The Act amends the Superannuation Guarantee (Administration) Act 1992. Here's what you need to know:

• Payment Deadlines: From 1 July 2026, super contributions must be received by the superannuation fund within 7 business days after payday, compared to the current 28 days after the end of the quarter. This change aims to streamline and expedite super payments.
• SG Charge and Contributions: An SG charge equal to any shortfall will apply on payday. However, timely contributions can offset this charge. Employers have a 12-month period to carry forward excess contributions.
• Penalties and Disclosure: Starting 1 July 2026, failure to remit the correct SG contribution within the designated 7 business days will attract hefty penalties. Voluntary disclosure statements can mitigate the administrative uplift component of these penalties.
• Employer Exemption Certificates: The process for obtaining exemptions when an employee has multiple employers has been simplified, reducing application timeframes and allowing for backdating.
• Tax Deductibility: The Super Guarantee Charge (SGC) payment (core amount of the shortfall + notional earnings + uplift) will now be deductible as of 1 July 2026. Any general interest charges (GIC) accrued, and penalties applied on the shortfall will remain non-deductible amounts.
• SGC Statements: Employers will no longer be required to lodge a SGC statement for each quarter with the shortfall. The ATO will now determine the SGC automatically from the reported data it receives from employers. There will still be an option for employers to make a voluntary disclosure prior to the ATO’s assessment.

ATO Compliance Approach

The Australian Taxation Office (ATO) has issued a draft Practical Compliance Guideline (PCG) outlining its approach to the first year of Payday Super implementation. Employers will be categorised into low, medium, and high-risk zones based on compliance, with a focus on high-risk categories during the 2027 financial year.

ATO Small Business Clearing House

The ATO has also announced they will be closing this as part of the changes on 30 June 2026. If you are currently using this as your clearing house, you will need to seek an alternative solution prior to this date. We recommend paying the June quarter super before 30 June 2026 if possible and downloading a copy of your payment transactions.

Unresolved Issues

Some challenges remain, including:

• Superannuation Clearing Houses: While convenient, they may not ensure timely receipt of contributions by the funds. Employers are encouraged to make direct payments to avoid penalties.

Click below to view a summary of key deadlines and considerations to help your business prepare for the changes.