Pay Day Super - Are you Ready?
- Corporate+
- Dec 2
- 3 min read
Topics Covered
Changes to Div 296 Tax - the extra 15% or 25% super
Company Directors - Did you Know?
Pay Day Super
The Australian Taxation Office (ATO) is urging employers to get ready for the introduction of Payday Super.
The Payday Super legislation has now passed and will take effect from 1 July 2026, meaning employers will be required to pay employees' super at the same time as salary and wages.
Payday Super will help employers meet their super guarantee (SG) obligations and help protect the retirement funds of millions of Australians.
‘Payday Super will provide the ATO with earlier visibility of under-payment or non-payment of super’
The ATO’s proposed compliance approach for the first year of Payday Super will recognise that employers who try to do the right thing, and resolve any issues quickly, will not be the focus of ATO compliance action.
Keep up to date with the progress of Payday Super at ato.gov.au/paydaysuper.
Changes to Div 296 - the extra 15% or 25% super
The Federal Treasurer has announced some significant changes to the design of the proposed Division 296 tax – an extra 15% tax or 25% tax on super.
These changes come into effect on 1 July 2026. And are as follows:
For the portion of a member's TSB between $3 million and $10 million, an additional 15% tax applies to the attributable earnings (on top of the fund's existing 15% rate bringing the total rate to 30%).
For amounts above $10 million, an additional 25% tax applies to attributable earnings (on top of the fund’s existing 15% rate, bringing the total tax rate to 40%).
Both thresholds will be indexed (the $3m threshold in $150,000 increments and the $10m threshold in $500,000 increments).
The additional tax will not be imposed on unrealised gains as previously proposed.
Funds (including SMSFs) will calculate their taxable/realised earnings for the year, attribute an appropriate share of those earnings to members whose total superannuation balance (TSB) exceeds the lower threshold, and report those figures to the ATO. The ATO will continue to aggregate TSBs across all super interests for each individual and issue any liability notices.
The start date is to be 1 July 2026 with the first time an individual’s TSB will be assessed against the Division 296 thresholds to be 30 June 2027.
Company Directors - Did you Know?
To ensure compliance and avoid penalties ASIC, companies are required to manage and update their director information. This includes maintaining accurate records of directors’ personal details, such as residential addresses, contact information, and appointment or resignation dates, and promptly lodging any changes with ASIC through the prescribed forms or online portal. By proactively monitoring and reporting changes, businesses not only meet their legal obligations but also safeguard against fines, reputational damage, and potential disruptions to corporate operations.
Did you know that you need to update your Director ID when you change your address?
Christmas Office Closure
As 2025 draws to a close, the team at Corporate+ Accountants would like to extend our appreciation for your continued trust and partnership throughout the year. We wish you and your loved ones a joyful Christmas and a relaxing summer break. Please note our office will be closed from 12noon December 19, 2025, and will reopen on January 12, 2026.
We look forward to reconnecting in the new year and continuing our journey together in 2026!
If any of the above raises questions for you or your business, please contact our office.
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