Prepare for new super payment rules starting on 1 July, tax experts warn

The new financial year is approaching, bringing, as usual, changes.

From 1 July, employers will have to send super cash to employees’ funds every pay run, rather than quarterly, according to financial experts.

Penalties for non-compliance will also rise on 1 July.

If super contributions have not landed in employees’ nominated accounts seven days after they should, an “administration uplift” penalty of up to 60% will be applied to the late payment, which will also accrue compound interest daily, according to DPM Financial Services.

Further penalties of up to 50% of the outstanding amount can apply if the employer does not pay up, DPM’s Amelia Jones wrote earlier this year.

Ms Jones said the Australian Taxation Office’s (ATO’s) use of Single Touch Payroll — where payments are automatically sent from pay software to the ATO — would automatically flag late payments.

“The framework is designed to make late super genuinely costly, not a minor administrative inconvenience,” she wrote.

She added that employers may have to make two super payments together, to cover the final June quarter of the old system and the first July wages under the new system.

“There’s a practical cash flow pressure point that’s easy to miss. Both land in the same month.

“It’s worth planning for this now rather than discovering it in July.”

The ATO is also closing its Small Business Superannuation Clearing House on 30 June.

The free service currently allows eligible small employers to pay all super in one payment, and the clearing house then distributes the funds.

Medical finance advice firm Credabl says employers should transition to either a commercial clearing house or a payroll-integrated solution.

“To help reduce compliance risks, we recommend planning for the change as early as possible,” the company said earlier this year.

“This will ensure that payroll operations are in order well before the 1 July 2026 deadline.”