Blog Elements

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

Did You Know…?

Discussions to be had on “Superannuation Pay Day” System In the 2023/24 Federal Budget, it was announced that employers will be required to pay their employees’ superannuation guarantee (SG) entitlements on the same day that they pay their salary and wages, with the proposal of this measure taking effect on 1 July 2026. The treasury […]

Superannuation Changes

/in Uncategorized/by admin

Superannuation contributions to be paid From 1 July 2026, employers will be required to pay their employee’s superannuation at the same time as their salary and wages. The measure has largely come about due to unpaid superannuation contributions being a chronic issue in the system. To further strengthen the system, the ATO will receive additional […]

Did You Know…?

/in Uncategorized/by admin

Superannuation Changes

/in Uncategorized/by admin

Full Sized Blog Element (Big Preview Pic)

Did You Know…?

/in Uncategorized/by admin

Discussions to be had on “Superannuation Pay Day” System

In the 2023/24 Federal Budget, it was announced that employers will be required to pay their employees’ superannuation guarantee (SG) entitlements on the same day that they pay their salary and wages, with the proposal of this measure taking effect on 1 July 2026.

The treasury has released a consultation paper to relevant stakeholders to discuss the impacts and the implementation of the new SG system. Currently their concern with the current system where super guarantee is paid on a quarterly basis raises the issues of when employers forget to pay their super obligations on time and many are left unpaid and causes difficulties when an employer goes into liquidation with outstanding SG obligations.

The proposed changes will encourage employers to pay their super obligations much closer to the time when the payment of wages is made thereby eliminating the issue of outstanding SG obligations. Under the new scheme, there are two methods up for discussion, one being the employer payment model and the due date model. Under the employment model the requirement would be on the employer to make the SG payment on that the same the salary and wages are paid. In competition, the due date model is the model is like the current system only that the payment must be made within a certain number of days after the payment of salary and wages are made.

The debate is determining what constitutes “pay day” and whether the ATO with have the IT capabilities to ensure accurate reporting and implementation methods to avoid the current issues. More information is to come on the result of this consultation paper, and we will keep you up to date on any changes made to the current SG obligation requirements.

If you think you have missed your SG obligation deadline or are unsure, please contact us and we can assist you further.

https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/consulting-payday-super#:~:text=As%20part%20of%20the%202023,incomes%20of%20millions%20of%20Australians.

Superannuation Changes

/in Uncategorized/by admin

Superannuation contributions to be paid

From 1 July 2026, employers will be required to pay their employee’s superannuation at the same time as their salary and wages.

The measure has largely come about due to unpaid superannuation contributions being a chronic issue in the system. To further strengthen the system, the ATO will receive additional resourcing to help it detect and act on unpaid superannuation payments. https://www.ato.gov.au/General/New-legislation/In-detail/Super/Payday-superannuation/

Super Rate Increased to 11%

If your small business has employees, or hires eligible contractors, you’ll need to ensure your payroll and accounting systems are updated to reflect the new super guarantee (SG) rate of 11% for payments of salary and wages you make from 1 July

.https://www.ato.gov.au/Business/Small-business-newsroom/Lodging-and-paying/The-super-guarantee-rate-is-increasing/

Super Matching is coming

ATO is readying to collect on $4 billion in underpaid or late superannuation. A renewed government focus plus Federal Budget funding will enable account matching Technology to compare STP reported super with that supplied to the ATO by super funds at scale.

The foundations have been set to reverse a decade-long ATO tradition of wrist-slapping for superannuation errors and a reactive approach to SG compliance.

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

Did You Know…?

Superannuation Changes

Did You Know…?

Superannuation Changes

Full Sized Blog Element (Big Preview Pic)

Did You Know…?

Discussions to be had on “Superannuation Pay Day” System

Superannuation Changes

Follow us on Facebook

Latest News

Business Hours