Chartered accountant GAIL FREEMAN says there’s a lot happening in the superannuation space right now, and shares some important reminders.

If you are an employer, on July 1 the new payday super regime starts. 

I have written about payday super previously. You can find this in the citynews.com.au archive, in the December 2, 2025 edition. 

It is now only three months away and super is going to have to be paid with wages every pay period.

This will clearly impact cash flow, so now is a good time to start paying the super with your payroll.

Under this new system there is no leeway for late payments. The super payment must be received by the fund/s within seven days of the payroll date. This is a very tight timeframe.

Most payroll programs are set up for payday super, so it is not too hard to start paying super now. The old system continues until June 30 so any super that is due and relates to the period before then does not need to be paid until late July. 

THERE are other significant changes that go along with payday super. The most important is that any late payments become tax-deductible. Before June 30 this year, late payments were non-deductible as were all the other charges imposed. Therefore, if you pay super late, you have the comfort of knowing that it is tax-deductible from July 1, unless it relates to an earlier period. 

THEN there is the additional tax on super balances of more than $3 million. If your super balance is between $3 million and $10 million, you will pay an extra 15 per cent on the earnings above $3 million.

If your super balance exceeds $10 million, you will pay a further 10 per cent on the earnings above $10 million.

For clarity, this means that the earnings of the first $3 million are taxed the same as they are now and only the excess is subject to the additional tax.

If you are anxious about this, please contact your superannuation advisor for clarity. The additional tax will be assessed to you personally, but you can choose to ask the fund to release it. Fortunately, both the $3 million figure and the $10 million figure will be indexed. 

NOW for some good news. The general transfer balance cap increases to $2.1 million effective from July 1.

This is the total amount of superannuation that you may transfer into a tax-free pension. If you have already begun a pension, you will be entitled to a percentage of this increase if you commence another pension. It is not the maximum amount you can hold in super and if, with good earnings, your balance exceeds $2.1 million, there are no further implications for you until such time as your super exceeds $3 million (see above).

AND in more good news from July 1, the total amount that you and your employer can contribute to concessional superannuation contributions, tax-deductible contributions, increases to $32,500. Also, the non-concessional contributions cap increases to $130,000. This allows you over three-years to contribute $390,000 to super. This can be very helpful if you have an inheritance or savings and want to top up your super, but it is not tax deductible. 

All these changes continue to make superannuation a very effective vehicle for ensuring your retirement is comfortable.

If you require information on any tax or superannuation related matter, contact the expert team at Gail Freeman & Co Pty Ltd on 02 6295 2844, email [email protected] or visit gailfreeman.com.au

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative
of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.

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