From July 1 this year, employers will need to pay superannuation guarantee contributions at the same time as wages, rather than weeks or months later.
Employers will have seven business days from payday to ensure contributions hit employees’ super funds. If payments are late, the superannuation guarantee charge will apply. That means paying the missed super plus an interest and administration penalty.
You’ve got time before the rules kick in, but the smart move is to prepare early. Here’s how:
- Check your payroll software – most modern systems (such as Xero, MYOB or QuickBooks) already support payday-aligned super.
- Map your pay cycles – note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each.
- Brief your team – make sure whoever manages the payroll understands the changes.
- Plan your cash flow – consider shifting from quarterly to more regular payments now to get used to the timing.
- Monitor and review – set up a monthly check to ensure super contributions have cleared correctly.
Katrina Brennan, principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your email below.
