The end of the financial year is fast approaching, and as usual, there are a number of changes being introduced effective 1 July 2026. 

Superannuation Guarantee Rate

The Superannuation Guarantee Rate remains at 12%. This is the first year in quite a while that the rate has not increased, but there are two significant changes that businesses need to be aware of and planning for now.

ATO Small Business Clearing House Closure

Firstly, the ATO Small Business Clearing House (SBCH) is closing. If a business is using the SBCH to lodge their superannuation contributions, they will need to change to a new clearing house. Most payroll software will have an incorporated clearing house that can be used, and there are many super funds that offer this service, meaning there are plenty of options available to businesses.

Pay-Day Superannuation

The second significant change is Pay-Day Super. Legislation has passed through Parliament, making it mandatory for businesses to pay their superannuation contributions in line with their wages. If a business pays wages weekly, it will now also have to pay superannuation weekly. The onus is on the business to ensure that employees' superannuation is in their funds within seven days of their wages being paid, and the ATO intends to introduce hefty penalties if businesses are not compliant.

Plan for Pay-Day Super Now

This is a great time for businesses to conduct a mini audit of their payroll and superannuation to ensure they are meeting their obligations and to begin planning for the implementation of Pay-Day Super. In fact, businesses can begin paying super in line with their wages now. 

If cash flow is a concern, it might be daunting to switch from quarterly lodgements to weekly or fortnightly (depending on your pay cycle). One possible solution is to begin paying monthly and then weekly in the lead up to 1 July 2026. For example:

• Pay January superannuation in February.
• Pay February superannuation in March.
• Pay March superannuation in April.
• Beginning 1 April, commence weekly or fortnightly superannuation payments (depending on the pay cycle)

This will provide business owners with a head start on Pay-Day super, and by 1 July 2026, hopefully, the business will be in a good position to make the regular super payments on time each pay cycle.

Transition Period – July 2026

July 2026 is going to be a transition period for Pay-Day Super, and that month may be a little confusing for those businesses that are not up to date with their super obligations.

From 1 July 2026 all super payments made will be allocated to the oldest outstanding super lodgement, which means that if the June quarter superannuation has not been paid (it is not due until 28 July 2026), and a wage is processed on 7 July and the super is paid, that super for the wage on 7 July will be allocated to the outstanding June quarter superannuation obligation. This will mean that the 7 July super obligation will be considered paid late.

If a business has more than one prior quarter of superannuation owing and begins their weekly contributions from the beginning of July 2026, the payments will be allocated to the longest outstanding debt.

The best way to overcome this potential problem is to check super obligations now, make sure the business is up to date with superannuation lodgements and payments. If there are any superannuation contributions outstanding that are past due, a Superannuation Guarantee Charge Statement should be completed and lodged with the ATO, and a payment plan can be implemented.

The contributions for the June quarter should be paid as soon as possible after the final pay is processed for June – this will alleviate the issue of the Pay-Day Super contributions being allocated to the wrong lodgement.

Late Superannuation Lodgements

If, for any reason, a superannuation contribution is paid late, the business can self-report the late lodgement and pay a nominal fee (which will be based on the amount outstanding). If the business takes the risk of making the payment late without self-reporting and the ATO discovers the discrepancy (even a few years later), the ATO will impose penalties. Penalties will date back from the discovery date to the date of the original contribution.

Smith Thornton Bookkeeping Team

The Bookkeeping Team at Smith Thornton Accountants has been preparing for Pay-Day Super for quite a while now and would be more than happy to assist businesses in transitioning to Pay-Day Super. They can help with overdue lodgements and completing Superannuation Guarantee Charge Statements, and can help the business to plan forward for up-and-coming obligations. The team also has a wealth of experience with different clearing houses, so if a business is still using the SBCH, they can help businesses move to a new superannuation solution. Get in contact here.