What’s New in Superannuation Compliance
Division 296 Tax (Large Super Balances)
- Effective 1 July 2026, if your total super balance (TSB) exceeds $3 million at year-end, an additional 15% tax will apply to the portion of earnings above that threshold. (community.ato.gov.au)
- If the balance exceeds the very large super balance threshold (VLSBT) of $10 million, an extra 10% tax applies to earnings above that mark. (community.ato.gov.au)
Payday Super Reforms
- From 1 July 2026, employers must make super contributions at the same time as salary/wages are paid (the “payday super” rule). (ato.gov.au)
- Closure of the Small Business Superannuation Clearing House (SBSCH) as of 30 June 2026. Existing users must transition to alternative payment methods by that date. (ato.gov.au)
Who Is Affected?
- High-net-worth and high super balance individuals: Those with $3 million+ balances.
- Fund trustees & SMSFs: Responsible for reporting earnings, applying thresholds, and calculating taxes for super members. (community.ato.gov.au)
- Employers: Timing of contributions must align with paydays; systems/processes may need adjustment. (ato.gov.au)
- Small businesses using the SBSCH need to change their processes. (ato.gov.au)
Compliance Steps You Can Take
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For Individuals with large super balances: • Check if you will cross the $3M or $10M threshold at either the end or just before the year begins. (community.ato.gov.au) • Work with your super fund or SMSF to understand how “relevant earnings” are reported. Divide the earnings over thresholds correctly.
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For Employers: • Review payroll systems to ensure super payments are scheduled for each pay run, not just monthly or quarterly. • Train payroll and HR staff on new rules and deadlines to avoid SG charges or penalties.
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For SMSFs & Trustees: • Ensure reporting requirements are met promptly—keep accurate records of member balances, earnings, and trigger thresholds. • Where SBSCH was used, transition to compliant payment methods and obtain any needed documentation before closure. (ato.gov.au)
Risks of Non-Compliance
- Penalties and SG charges may apply where employers fail to meet payday super obligations. Delays could incur liabilities. (ato.gov.au)
- Tax shortfall or unexpected high tax bills for individuals who exceed the super balance thresholds without planning. Super funds will report—tax will be assessed later. (community.ato.gov.au)
Takeaway Summary
- If your super balance is trending toward or beyond $3M, plan now—structure earnings, contributions or withdrawals with tax efficiency.
- Employers need to align pay and super payments immediately to avoid complications.
- Old systems like the SBSCH are phased out; don’t delay migrating.
Compliance with these reforms isn’t optional—it’s necessary for avoiding penalties and optimizing your tax outcomes.