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The new financial year has brought several important superannuation changes that every Australian business should be aware of. While some updates create new opportunities for employees, the biggest changes place new responsibilities on employers.

If you employ staff, now is the time to ensure your payroll systems, cash flow and compliance processes are aligned with the new requirements. Here’s what you need to know.

Super Guarantee Remains at 12%

The Superannuation Guarantee (SG) rate remains at 12%. There have been no changes to the contribution percentage employers are required to pay. However, while the rate stays the same, the timing of super payments has changed significantly.

Payday Super – The Biggest Change for Employers

The most significant superannuation reform this financial year is the introduction of Payday Super.

Since 1 July, employers are required to pay employees’ superannuation at the same time they pay wages, rather than making quarterly super payments. While the total amount you pay throughout the year hasn’t changed, when you pay it has.

For many businesses, this means:

• reviewing payroll software and processes;
• ensuring super payments are processed with every pay run;
• managing cash flow differently, particularly if you previously relied on quarterly payment cycles;
• monitoring payment timeframes more closely, as contributions generally need to reach employees’ super funds within the required period after payday.

For businesses still using manual payroll processes or older systems, now is an ideal time to review whether your current setup is fit for purpose.

For a detailed overview of the new requirements, including payment timeframes and employer obligations, you can visit the Australian Taxation Office’s official Payday Super guidance:

https://www.ato.gov.au/businesses-and-organisations/super-for-employers

What Should Employers Do Now?

If you haven’t already reviewed your payroll processes, now is the time to do so. Ask yourself:

• Is our payroll software ready for Payday Super?
• Are our payroll and accounting systems integrated?
• Will our cash flow comfortably accommodate super payments every pay cycle?
• Are we confident we’re meeting all ATO reporting obligations?

A proactive review can help avoid unnecessary penalties, payroll issues and compliance risks.

What Employees Should Know

While most of the changes affect employers, there are also some positive updates for employees and individuals planning for retirement.

1. Higher contribution caps
   From 1 July, both concessional (before-tax) and non-concessional (after-tax) contribution caps increased, allowing Australians to contribute more to their super while potentially benefiting from additional tax advantages. This may be particularly valuable for those using salary sacrifice arrangements or making voluntary contributions to boost their retirement savings.
2. Higher Transfer Balance Cap
   The General Transfer Balance Cap also increased, allowing eligible Australians to transfer a larger amount into a tax-free retirement income stream when they retire. While this change won’t affect everyone, it provides greater flexibility for individuals with larger super balances planning their retirement.

How Bilateral Solutions Can Help

The new superannuation rules are about more than simply meeting compliance obligations. They’re an opportunity to ensure your payroll, bookkeeping and business processes are working as efficiently as possible.

Our team can help you review your payroll systems, navigate the Payday Super requirements, ensure you’re meeting your employer obligations and answer any questions about how these changes affect your business.

If you’d like to make sure your business is fully compliant and set up for the new financial year, we’re here to help.