Tax Insights

Since 1 July 2026, super guarantee contributions generally need to reach an employee's super fund within seven business days after payday rather than being paid quarterly.

The structure is designed to increase the financial consequences of delayed super payments while encouraging employers to correct errors as quickly as possible.

Draft legislation released in September 2026 sets out how the proposed regime would operate from 1 July 2028. The measure is not yet law, but the exposure draft provides a clearer picture of the potential tax treatment, available exclusions and restructuring options.

The minimum tax was announced as part of the 2026–27 Budget and is proposed to apply from 1 July 2028. However, the measure is not yet law.

The Australian Taxation Office (ATO) says about $21 billion in contractor payments is covered. It also estimates that around $1 billion in TPAR payments may be left out or under-reported this year, making the change relevant to both return preparation and income reporting compliance.

The change removes the tax deduction that previously reduced the after-tax cost of these charges. It also affects interest associated with older tax debts: the year in which the underlying debt arose does not, by itself, preserve deductibility.

A performance audit tabled in June 2026 found that the risk associated with rising small business tax debt had moved outside acceptable tolerance levels. The tax administration has since agreed to implement all eight recommendations arising from the review.