Treasury has a target date of 1 July 2026 to introduce payday super payments. This means that employee super will be paid to the super funds every pay day – not quarterly.
While this may seem like an added task, most small to medium businesses will be able to manage cash flow better.
The date is a long way away, however, many hospitality businesses will need to improve their cash flow as soon as possible to manage the super payments when they are implemented. If you want to pay super more frequently than quarterly, you can start now of course.
Key points:
- Super to be “paid” on payday alongside wages i.e. the same day Ordinary Time Earnings (OTE) are paid
- Payments to be received by the fund within 7 calendar days
- 2 week grace period for new employees
- Small & irregular payments of OTE can be paid on the next regular payment of OTE
- SGC is retained but remodeled
- SG shortfall definition is aligned to the OTE definition
- Maximum SGC penalties are reduced with concessions for voluntary disclosure
- Super funds will have 3 days to process SG contributions or return (down from 20 days)
- Streamlined Choice rules
- ATO administered SBSCH (Small Business Super Clearing House) to be retired
There is much work to do by professional associations, Treasury, superannuation funds, clearing houses and the ATO before the initiative could be launched on 1 July 2026. Understand that we will be monitoring the status closely for updates.
Download the treasury fact sheet HERE
Call us on 1300 043 327 for confidential chat about your food business.
Data supplied by The Treasury and Australian Bookkeepers Network.
