Payday super changes are coming in the new financial year and employers have been reminded to check their compliance.
The reminder comes from Chartered Accountants Australia and New Zealand (CA ANZ), which represents more than 140,000 financial professionals.
On May 2, 2023, the federal government announced that as July 1, 2026, employers will have to pay their employees’ Superannuation Guarantee (SG) at the same time as their salary and wages.
The Treasury estimates that almost nine million workers will benefit from the change; click here for a Treasury factsheet.
“Time is running out. Businesses cannot afford to underestimate the details of the payday super reforms. The window for a smooth transition is narrowing,” said CA ANZ Superannuation and Financial Services Leader Tony Negline.
“This is not a simple timing adjustment; it is a structural reform that will fundamentally change payroll operations, cash‑flow management and compliance obligations.
“Australian Tax Office data tells us that only a small cohort of employers fail to comply with their superannuation contribution obligations,” Negline says.
“The vast majority of employers seek to pay in the required timeframes.
“The Payday Super reforms impact all employers equally.”
PAYDAY REFORMS GUIDE
CA ANZ recently launched a guide for members and their clients to better understand the implications of shifting to simultaneous payments of superannuation guarantee contributions and salary/wages.
“Most businesses, particularly small-and-medium-enterprises, will need to upgrade systems, redesign processes and strengthen internal controls to meet these new requirements,” Negline explains.
“If employers leave this too late, they risk disruption, operationally and financially.
“Cash‑flow pressures will increase, and the tighter reporting environment means errors will be detected faster and more often.”
CA ANZ says the move from quarterly to per‑pay‑cycle SG payments will require employers to ensure their payroll systems can calculate and remit contributions accurately at every pay event.
“Overtime, the reforms are expected to reduce exposure to the SG charge but only for employers who are fully prepared and put in the increased effort to comply with the law,” Negline says.
“Increased data visibility and more frequent reporting will heighten scrutiny and accelerate the identification of non‑compliance.”
