New Superannuation Laws in Australia: Essential Information For Businesses

Superannuation has always been a core part of running a business and looking after your team in Australia. But if you’re an employer, you’ve likely noticed the landscape is shifting fast - with new rules rolling out from 2024 through to 2026.

These changes are designed to improve transparency, get super contributions into employees’ accounts sooner, and tighten enforcement. For businesses, that means sharper payroll processes, stronger record-keeping, and closer attention to who is eligible for super and when it must be paid.

If you’re scaling a team or tightening your compliance, this guide breaks down what’s changed, what it means for your business, and the practical steps to take now so you’re ready - without disrupting cash flow or operations.

Below, we cover the key law changes in plain English, the everyday impacts on your payroll cycles, a step-by-step compliance plan, and the documents and processes that help you stay on top of your obligations.

What Has Changed In Superannuation Law In 2024–2026?

Australia’s super system evolves regularly, but the current reform period introduces some of the most significant changes for employers in years.

• Superannuation Guarantee (SG) rate increases: From 1 July 2024, the SG rate rose to 11.5%. It is legislated to increase again to 12% from 1 July 2025. This affects most eligible employees and increases your super outgoings on each pay.
• “Payday super” is coming (from 1 July 2026): Employers will need to pay super at the same time as salary and wages (each pay cycle), rather than quarterly. This change is aimed at getting contributions into funds faster and improving visibility for employees and the ATO.
• Expanded ATO visibility and enforcement: Single Touch Payroll (STP) data and fund reporting give the ATO near real-time oversight. Expect faster detection of missed or late payments and closer scrutiny where records don’t line up.
• Stapled funds are the default: A new employee’s super fund generally “staples” to them from job to job. You must check for a stapled fund via the ATO before you set up a new fund, unless the employee chooses a different fund.
• Removal of the $450-per-month threshold - with an important under-18 caveat: Most earnings are now superable regardless of how little an adult employee earns. However, for employees under 18, SG is only payable if they work more than 30 hours in a week (and otherwise meet eligibility rules). This under-18 rule remains in place.

Together, these reforms shift the emphasis from quarterly reconciliation to accurate, on-time contributions every pay cycle - supported by robust systems and records.

How The New Rules Affect Your Payroll And Cash Flow

For many businesses, the biggest shift is operational. Paying super with each payroll run requires well-configured software, clean data, and a process that keeps you compliant week in, week out.

Here are key impacts to plan for now.

1) More frequent super payments

From 1 July 2026, you’ll pay super at the same time as wages (weekly, fortnightly, or monthly). This means:

• Cash flow planning becomes more granular. Short-term forecasting should factor in super outflows each pay cycle, not once a quarter.
• Payroll settings must calculate contributions correctly on every run, based on ordinary time earnings (OTE) and eligibility rules.
• Reconciliations happen continuously, so variances are picked up sooner - which is good for compliance and employee trust.

2) Higher contribution costs

With the SG at 11.5% (rising to 12% on 1 July 2025), your super costs increase across the board. If your contracts state “salary + super,” you’ll see a direct increase in employer contributions. If your contracts use a “total package” structure, you may need to communicate and adjust how compensation is split.

3) Clear treatment of different pay types

The SG applies to OTE, so it’s critical your payroll item setup is correct. Common questions include whether to pay super on bonuses, how to treat allowances, and if super applies to termination payments or payment in lieu of notice. Your answers depend on legislation and ATO guidance - and the configuration inside your software.

4) Tighter record-keeping

Because STP and fund data create a real-time paper trail, your records need to show:

• Who was paid super, how much, and when
• Eligibility checks, including the under-18 30-hours rule
• Stapled fund requests and outcomes
• Corrections made (and when) if you identify errors

Clean records are your best defence if the ATO asks questions, or if an employee queries their super.

Step-By-Step: Set Your Business Up For Compliance

Whether you employ one person or a large team, the process below will help you prepare for payday super and stay compliant today.

1) Audit your payroll software and settings

Confirm your system can pay super each pay run, supports STP, and calculates contributions correctly at current SG rates (11.5%). Check pay item mapping to OTE, treatment of bonuses, allowances, and terminations, and how the system handles under-18 eligibility.

Tip: Create a simple checklist and test a sample pay run end-to-end - from payroll, to contribution clearing, to fund receipt.

2) Map your pay cycles to cash flow

Shift your forecasting to incorporate super outflows per cycle. If you currently pay weekly wages but quarterly super, simulate the impact of weekly super payments so there are no surprises when payday super starts in 2026.

3) Confirm employee eligibility (including under-18s)

Remove any legacy $450-per-month threshold settings. For anyone under 18, apply the 30-hours-per-week rule. If you engage contractors, remember some contractors are treated as employees for super purposes depending on how they work and how they are paid - build a process to assess this at onboarding.

4) Check stapled funds before setting up new funds

When a new employee starts, request their stapled fund details from the ATO. Only set up a new default fund if there is no stapled fund and the employee hasn’t chosen their own fund. Keep a copy of your stapled fund requests and outcomes.

5) Update your contracts and policies

Make sure your Employment Contract wording around remuneration and super is clear and reflects how you actually pay (for example, “base + super” versus “total remuneration package”). Internal payroll and workplace policies should also explain how you pay super, when, and what records you keep.

6) Strengthen your reporting and reconciliation cadence

Move from quarterly to monthly or per-pay-cycle reconciliations now, so your team gets used to the process well ahead of 1 July 2026. Where you spot errors, fix them promptly and document the correction.

7) Train your payroll and onboarding teams

Give your team clear guidance on eligibility rules (especially the under-18 rule), stapled fund checks, OTE calculations, and timing. Short internal guides or checklists go a long way.

8) Get professional help for complex scenarios

Edge cases can be tricky - for example, variable hours for under-18s, paying super on atypical allowances, or contractor arrangements that resemble employment. It’s sensible to involve your accountant or bookkeeper on tax/processing issues, and our team can help align your contracts and policies with your payroll processes so everything works together smoothly.

Common Edge Cases Under The New Super Laws

Most pay runs are straightforward, but a few areas commonly spark questions. Use the points below as a quick sense-check.

• Under-18 employees: The $450 threshold is gone, but the 30-hours-per-week requirement remains. If an under-18 works 28 hours this week and 32 the next, they’re only entitled to SG for the week in which they worked more than 30 hours (subject to other eligibility rules).
• Casuals with variable hours: Monitor hours carefully for under-18s. For adults, variability mainly affects OTE amounts - ensure your payroll items are correctly mapped and the SG is recalculated per pay run.
• Multiple employers: SG is assessed per employer. Don’t assume another employer’s contributions reduce your obligation.
• Contractors: Some contractors are entitled to super (for instance, if they are paid mainly for their labour and the arrangement is akin to employment). Build an assessment step into onboarding and review borderline cases periodically.
• Bonuses and incentives: Depending on how they are structured, bonuses can be OTE. Confirm how your system treats bonus categories so super on bonuses is applied correctly.
• Termination scenarios: Some termination components are OTE; others are not. Confirm whether super applies to termination payments and how you handle payment in lieu of notice.
• “Salary including super” agreements: Be clear whether salary is expressed as a package (inclusive of super) or as base + super. If you’re unsure how to structure this or communicate it to staff, this guide on whether do salaries include super is a helpful starting point.
• What counts as OTE: This is the foundation for calculating SG. Revisit what your payroll treats as OTE versus excluded categories using your software documentation and ATO guidance, and keep this aligned with your internal process notes and your understanding of ordinary time earnings.

What Are The Penalties And ATO Powers?

With the ATO’s increased visibility, late or missed super stands out quickly. If you don’t pay the right amount on time and to the right fund, you may be liable for the Super Guarantee Charge (SGC). The SGC can be costly and includes:

• The SG shortfall (the unpaid super amount), calculated on salary and wages rather than OTE, which can increase the base for calculation
• Interest (currently 10% per annum) from the start of the relevant quarter
• An administration fee (per employee, per quarter)

In addition, the ATO can apply penalties for late or incorrect SGC statements, and may issue director penalty notices for serious or repeated non-compliance. Because funds and the ATO see more data, mismatches are spotted much sooner than under the old quarterly approach.

The practical takeaway: it’s far cheaper and less stressful to prevent issues with clean, timely processes than to fix them after the fact. If you do discover an error, rectify it quickly and document what happened, what you corrected, and how you’ll prevent a recurrence.

What Legal Documents And Internal Policies Help?

Strong, up-to-date documents and clear internal processes make compliance easier - and help your payroll, HR and finance teams work from the same playbook.

• Employment Contract: Set out remuneration clearly (e.g. “base + super” or “total remuneration package”), eligibility, and any relevant allowances and entitlements. A well-drafted Employment Contract reduces confusion and supports your payroll settings.
• Payroll and Super Policy: An internal policy that outlines when super is paid (and how this will align with payday super), how OTE is determined, stapled fund checks, and approvals/reconciliations.
• Onboarding documentation: A simple pack or digital flow that collects fund choice details, authorises stapled fund checks, and flags contractor/employee classification.
• Workplace policies: Clear, consistent workplace policies that align with your contracts and payroll practices make training and audits easier.
• Record-keeping system: A reliable digital system for storing payroll reports, contribution confirmations, stapled fund requests, and any corrections made over time.

If your templates are outdated - or your contracts say one thing while your payroll system does another - it’s a good time to update and align everything so day-to-day processing is simple and compliant.

Key Takeaways

• The SG rate is 11.5% from 1 July 2024 and will increase to 12% from 1 July 2025. Plan for the higher cost base in your budgets and contracts.
• “Payday super” starts from 1 July 2026, so configure your payroll and cash flow now to pay super at the same time as wages each cycle.
• The $450 threshold is gone, but employees under 18 only receive SG if they work more than 30 hours in a week (and meet other eligibility rules).
• Stapled funds mean you must check the ATO for a new employee’s fund before opening a new one, and keep records of your checks and payments.
• STP and fund reporting give the ATO real-time visibility. Strong processes and records are your best protection against penalties and audits.
• Make sure contracts, policies and payroll settings match - including how you treat OTE, bonuses, and termination payments for super purposes.

If you’d like a consultation on updating your business for the new superannuation laws, or need help aligning contracts and policies with your payroll processes, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.