As part of the 2023-24 Federal Budget (9 May 2023), the federal government announced "payday super", which will require you to make superannuation guarantee payments for your employees on the same time as their salary and wages.
Many businesses end up falling behind on their superannuation guarantee payments, and this measure essentially becomes a compliance check for the Australian Taxation Office (ATO). It will also help your employees achieve a better retirement.
Impact for your business
As payday super will not commence until 1 July 2026, your payroll service providers will have enough time to change their products and systems.
More frequent super payments will make your payroll management smoother with fewer liabilities building up on your books.
You will also have a considerably large window to adjust your cash flow practices and plan ahead for any changes that may be necessary.
Other matters
Changes to the design of the superannuation guarantee charge will also be necessary to align with increased payment frequency. The federal government will consult with relevant stakeholders on the design of these changes, with the final design to be considered as part of next year's Federal Budget.
Contact us
With this measure due to commence in the 2026-27 income year, you should reflect on your current cash flow practices and plan ahead for the increased frequency of super payments for a smooth transition.
We can help you with this business planning and help determine the best course of action based on your business needs, including any potential issues you have with pricing.
Please feel free to contact our office to discuss this further.