Timing of SG under payday rules can impact concessional cap thresholds in FY26

Late June-quarter contributions may be counted together with July–September 2026 payday super contributions, potentially pushing employees over their concessional contribution caps, a legal expert said.

Bryce Figot, special counsel for DBA Lawyers, said from 1 July this year, “payday super” begins and will require employers to pay super within seven business days of each payday.

However, he warned a key issue arises for the final quarter of the 2025–26 financial year in that although employers are allowed to pay that quarter’s super between 1–28 July 2026 doing so could cause a concessional contributions problem.

“I think a lot of employer software probably still doesn’t handle this stuff very well, so everyone needs to make sure that your employer clients will be able to do payday super correctly in time,” Figot said.

“No one wants to be called a wage thief or all the penalties that go with it. But the other thing that I think we need to think about for clients who are employees, their SG contribution for the final quarter of the current financial year should try to be paid before 1 July 2026.”

Figot continued there is a “bit of a mismatch when the two regimes” speak to each other when the payday super regime commences and if an employer pays the final FY 2026, quarter between 1 July-28 July 2026, which they’re entitled to do, it is still added for concessional contribution purposes to employer contributions made under payday super in July and August and September.

“That could be enough to push someone into excess territory. And although you can apply to the Commissioner to exercise discretion under PSLA 2008/1, it’s quite unlikely that they will,” Figot added.

“It’s a bit of a hot, unknown topic. We’ve had some commentary from the Assistant Treasurer, Daniel Mulino, but for the time being, don’t assume you’ll get any help from the government.”

He added the best strategy is try to ensure that SG contributions for the final quarter of this financial year are paid before 1 July 2026.

As late as November last year, industry and association bodies, including the SMSF Association and the Institute of Public Accountants, were calling for a more “pragmatic and phased” approach to the law.

Peter Burgess, chief executive of the SMSFA, told SMSF Adviser the association was concerned about the timelines, particularly for small businesses that may not have the resources to adjust to the new requirements in such a short period of time.

“The payment of SG contributions is much more complicated than the payment of salaries and will require changes to systems and processes and changes to cashflow management to ensure sufficient funds are available each pay cycle to pay salaries as well as SG contributions,” he said.

“To provide more time for small businesses, we support a staged implementation process with small businesses granted a longer transition period to adjust.”

However, the legislation passed through the Senate with no amendments.

Keeli Cambourne

February 18 2026

smsfadviser.com