Our submission on payday super

On 3/11/2023, we provided our submission on the payday super regime. In brief, we support the change for employers to pay SG contributions at the same time they pay salary and wages and have proposed a ‘pay date’ regime that is similar to the ‘employer payment model’ as outlined…

On 3/11/2023, we provided our submission on the payday super regime. In brief, we support the change for employers to pay SG contributions at the same time they pay salary and wages and have proposed a ‘pay date’ regime that is similar to the ‘employer payment model’ as outlined in the consultation paper, however, a number of key differences/features exist.

A summary of our payday super model - key recommendations:

1. Move to a ‘pay date’ (ie, payment date) model for SG contributions rather than a ‘due date’ (ie, receipt date) model
2. Introduce a fairer and proportionate graduated penalty regime that will be lenient on accidental or inadvertent non-paying employers and harsh on deliberate non-paying employers
3. Employers who make late SG contributions would pay interest on the late payments rather than the current system of receiving a SG charge assessment
4. Late payments and interest would be deductible (currently they are not deductible)
5. Non-payers would continue to receive SG charge assessments as is the case under the current system
6. Superannuation clearing houses should be regulated so they are obligated to remit SG contributions on time under the pay date model
7. Micro businesses to be exempt from the payday super regime and remain as quarterly SG contributors.

Further details regarding our recommendations can be found in our submission and media release.