The way you pay super is changing

The way you pay super is changing. From 1 July, superannuation must be paid at the same time as your regular salary or wages, and must be received by the fund within 7 business days of payday.

Below is a quick checklist to ensure your business is ready for the transition.

1. The ATO SBSCH is closing down

• Switch to a new super payment system
  The Small Business Superannuation Clearing House (SBSCH) closes permanently on 30 June. You must move to a compliant system (like Xero Automated Super or an alternative industry/commercial clearing house) before June 30.

• Download your historical records
  If you have been using the ATO SBSCH you will need to log into the SBSCH portal and download all employee payment and superannuation transaction details before 1 July. You will lose access to this data once the portal closes.

2. Review your payroll setup

• Audit employee data
  Double-check that all employee details, including Super Fund names, Unique Superannuation Identifiers (USIs), and individual member numbers are 100% accurate.

• Verify calculations
  Test your software to ensure superannuation is calculating correctly across all pay types and make sure your payroll software is fully updated and configured to handle the new Payday Super rules.

3. Update your internal processes

• Shift to Per-Pay-Run payments
  Update your workflow to approve and pay super every single time you process payroll, rather than holding it for monthly or quarterly batches.

• Eliminate approval delays
  Establish a strict internal timeline so that super payments are approved immediately on payday to hit the strict 7-business-day delivery window.

4. Manage and forecast cash flow

• Prepare for frequent cash outflows
  Adjust your bank account structures and cash reserves to accommodate super leaving your business concurrently with every wage cycle.

• Update cash flow forecasts
  Model your upcoming business expenses based on this new, frequent payment cycle to ensure you never face a shortfall on payday.

Moving to a per-pay-run system means greater reliance on reliable software, but it eliminates the stress of massive quarterly super bills. By having your systems ready now will ensure a seamless transition on July 1!