Payday Super

Payday Super

As part of the 2023 Budget, the Federal Government announced that from 1 July 2026 employers will be required pay employee superannuation on the same day they pay their employees’ regular wage (rather than the current requirement to pay super quarterly).  There are exceptions to the same day payment requirement:

  • Within the first two weeks of new employment, employees will have their superannuation payment date deferred until the two weeks of employment is completed;
  • Small and irregular payments which occur outside of the ordinary pay cycle for an employee will be excepted.

From 1 July 2026, the ATO will also be retiring the Small Business Superannuation Clearing House (which is currently a popular method used by employers to pay their superannuation).

As an employer, this means that before 1 July 2026, you will need to make sure you have the right systems in place to be able to pay your employee super at the time you pay wages.  (We recommend having these systems in place well before the scheduled start date to ensure you can comply from 1 July 2026.)

Penalties for late payment

If the superannuation contributions are not received by your employees’ super fund within 7 days after payday, employers will be liable for Superannuation Guarantee Charge.  This Superannuation Guarantee Charge will include the superannuation shortfall, notional earnings and an administration charge. 

Our comment

While these provisions are not yet law, we recommend that businesses start now to setup appropriate systems to ensure their compliance.

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent,

Small Business Lodgement – Penalty Amnesty

Small Business Lodgement – Penalty Amnesty

As part of the 2023-24 Budget the Federal Government announced a small business lodgement penalty amnesty.  This is a time-limited initiative introduced to provide small business owners with the chance to get their tax obligations up-to-date without incurring any late lodgement penalties.  The amnesty is effective from 1 July 2023 until 31 December 2023.

To be eligible you will need to meet the following criteria:

  • You are a small business with an aggregated turnover of less than $10 million at the time the original lodgement was due.
  • You have outstanding income tax returns, business activity statements and/or fringe benefits tax returns that were due between 1 December 2019 – 28 February 2022.
  • Eligible overdue forms are lodged between 1 June 2023 and 31 December 2023.

If you lodge your outstanding returns as part of the amnesty, any late lodgement penalty will be remitted.

The amnesty doesn’t apply to private owned groups or individuals controlling over $5 million of net wealth.

Please contact us if you have outstanding lodgements and would like assistance in getting these up-to-date.

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent.