Latest Accounting News
Hot Issues
ATO reveals small business hit list to combat tax debt
What are the FBT implications of Employee Christmas Parties and Gifts?
Assess a business before you buy it
Christmas Parties and Taxi Fare/Rideshare – FBT implications.
Practitioners cautioned on ATO’s top target areas for GST
ATO to target growing businesses in latest compliance blitz
Our SG compliance results are here
Top 20 Most Watched Christmas Movies ever - pre covid
A Unique Advent Calendar
Businesses ghosting the ATO targeted in debt collection blitz
Claiming the tax-free threshold: getting it right
Aussies tired of ‘dodgy tax criminals’, warns ATO
Protect your small business by following these essential steps.
Super guarantee a focus area for ATO business debt collection
Controversial ‘Airbnb tax’ set to become law
Withholding for foreign residents: an ATO focus area
1 in 3 crypto owners confused about tax, study reveals
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
ATO reveals common rental property errors from data-matching program
New SMSF expense rules: what you need to know
Government releases details on luxury car tax changes
Treasurer unveils design details for payday super
6 steps to create a mentally healthy and vibrant workplace
What are the government’s intentions with negative gearing?
Small business decries ‘unfair’ payday super changes
The Leaders Who Refused to Step Down 1939 - 2024
Time for a superannuation check-up?
Scam alert: fake ASIC branding on social media
Millions of landlords the target of expanded ATO crackdown
Government urged to exempt small firms from TPB reforms
ATO warns businesses on looming TPAR deadline
How to read a Balance Sheet
Unregistered or Registered Trade Marks?
Most Popular Operating Systems 1999 - 2022
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 2 April - June 2007
Quarter 2 April - June 2006
Treasurer unveils design details for payday super

The government has released further details about the design of its payday super policy including an updated super guarantee charge framework. 



.


The Albanese government has released further information about the design of its payday super policy in a factsheet published on Wednesday. 


The reforms, which will apply from 1 July 2026, will require employers to pay their employees super at the same time as their salary and wages.


In a joint statement with the assistant treasurer, Treasurer Jim Chalmers said the new design details will help incentivise compliance and ensure employees are compensated for any delays in receiving their super.


The proposed design makes changes to the super guarantee charge framework to incentivise employers to quickly disclose and rectify any instances of unpaid
superannuation. It will increase the consequences for employers who don’t pay on time and apply bigger penalties for employers who repeatedly do the wrong thing. 


Businesses will become liable for the updated superannuation guarantee charge if super contributions are not received by their employees’ superannuation fund within seven days of payday.


The government said this will provide time for payment processing to occur while also ensuring that swift action can be taken against employers that are not meeting their obligations. 


The Treasurer said the revised choice of fund rules under the policy design will make it easier for employees to nominate their existing super fund when they start a new job, reducing unintended duplicate accounts and giving employers more timely and accurate details.


Chalmers said payday superannuation would be revolutionary for the country’s superannuation system. 


“Paying super on payday is part of the government's efforts to ensure Australians earn more, keep more of what they earn and retire with more as well,” Chalmers said.


“This change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers.”


Chalmers said by switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement.


The push towards payday super follows the ATO’s estimation that $3.6 billion worth of super went unpaid in 2020–21 despite most employers doing the right thing.


The Australian Superannuation Fund Association (ASFA) welcomed the government’s announcement to introduce compulsory payday super from 1 July 2026.


ASFA CEO Mary Delahunty said this will ensure millions of Australians receive the superannuation they are owed and benefit from having their super invested earlier and more frequently.


“Payday super is a game-changer,” Delahunty said.


“This reform means workers will see their super build in real-time, alongside their wages and will mean less lost super and better investment outcomes in preparation for retirement.”


“We are sure that this change will encourage people to engage more regularly with their retirement savings.


ASFA noted this reform will prove a more fair and equitable superannuation system for all Australians as unpaid super usually disproportionately affects lower-income earners, casual workers and women.


“It’s about fairness. Payday super makes it more likely that Australians will receive the super contributions they’ve earned, paid on time, every time,” Delahunty said.


 


 


 


Imogen Wilson
19 September 2024 
accountantsdaily.com.au




20th-October-2024

Liability limited by a scheme approved under Professional Standards Legislation