Payday Super
The Australian Government has released draft legislation to implement Payday Super, a policy first proposed in the 2023-24 Budget. Here are some of the key changes expected from the new law.
Payday Super is quite literally that — meaning that from 1 July 2026, the superannuation liability will be payable at the same time employees are paid. That means businesses that normally pay their staff fortnightly will also pay the associated superannuation contributions on the same fortnightly basis.
In addition to the massively increased frequency in contributions, there are also other elements to the Payday Super changes that need careful consideration and planning.
Reporting changes — Ordinary Time Earnings (OTE) will need to be reported via STP2, and an upgrade to Sybiz Visipay will be required to accommodate this change. The upgrade process will automate the identification of OTE pay items where possible, but manual checks will be required.
Calculation changes — The maximum superannuation contribution base is changing from quarterly to annual. A new term: 'Qualifying Earnings' (QE) will be introduced to differentiate between OTE and QE where the maximum superannuation contribution base comes into play.
Timing changes — Funds will need to hit members accounts in a shorter timeframe, otherwise the Super Guarantee Charge will apply. This means onboarding (see below) and dealing with employee’s fund changes will need to be slicker than it has been.
Clearing house — The Small Business Superannuation Clearing House will be closed. SybizSuper — powered by SuperChoice — is a readily available replacement for Sybiz Visipay users.
Onboarding
A new function to support onboarding employees is being made available within the Sybiz Employer Portal. This enables new hires to receive an email to create an account and provide relevant information to employers to streamline the onboarding process, especially regarding superannuation details which are required to be known a lot sooner under Payday Super. To receive a copy of the instructions of how to use this function once available, please register here.
Superannuation rate change
On the topic of superannuation, it is worth noting again that the final increment to the 12% rate will occur from 1 July 2025.
