Super Newsletter
Annual Superannuation Statement: make time to review your retirement strategy
As annual superannuation statements are issued, this is an ideal time to reflect on the structure and performance of your retirement savings. These statements provide more than a snapshot of your current balance; they offer a valuable opportunity to ensure your superannuation arrangements remain aligned with your financial goals and personal circumstances.
Key Considerations for Review
Insurance Cover - Your superannuation may include default insurance such as life and income protection. It is important to assess whether this cover remains appropriate. Life events, such as starting a family, purchasing property, or changing employment, may warrant a review of your insurance levels to ensure they reflect your current needs
Investment Performance - Review your fund’s investment returns and compare them with industry benchmarks. Even modest differences in performance can have a significant impact over time For example, a 0 7% increase in annual returns could result in over $150,000 in additional savings across a working lifetime (based on a 42year working life, superannuation guarantee contributions only and a starting salary of $70,000).
Contribution History - Confirm that employer contributions have been correctly paid and reflect the current Superannuation Guarantee rate of 12%. You may also wish to consider whether additional voluntary contributions could help accelerate your progress toward retirement goals
Nominated Beneficiaries - Ensure your nominated beneficiaries are up to date and reflect your current intentions. This is particularly important following major life changes such as marriage, divorce, or the birth of children.
Investment Strategy Alignment - Your investment strategy should reflect your risk tolerance, time horizon, and retirement objectives If you are unsure whether your current strategy is appropriate, consider seeking professional advice to tailor a strategy that suits your individual circumstances.
Planning
for
Retirement
- Superannuation is a long-term financial asset that benefits from regular review. Whether you are planning for early retirement, a phased transition to part-time work, or simply aiming to maximise your income in retirement, it is important to have a clear and personalised plan in place.
Next Steps
Your annual statement is a valuable prompt to take action. If you have questions or would like assistance reviewing your superannuation arrangements, we encourage you to speak with your adviser or contact our team. We are here to help ensure your retirement savings are working effectively for you.
Why Is It Closing?
The SBSCH was designed for quarterly super payments With the introduction of Payday Super, employers must pay super contributions at the same time as wages, and the SBSCH is not equipped to support this real-time model. The government is encouraging businesses to adopt modern payroll software or commercial clearing houses that integrate with Single Touch Payroll (STP).
Implications for Small Businesses
Loss of a Free Service - SBSCH has been a cost-free solution for over 250,000 small businesses. Many alternatives may involve subscription fees or per-transaction costs. Administrative Shift - Businesses must integrate super payments into every pay run, rather than batching them quarterly. Compliance Risk - Without a suitable replacement, businesses risk missing super deadlines and incurring penalties under the Superannuation Guarantee Charge (SGC).
What You Should Do Now
1.Review Your Current arrangements: Confirm whether your business uses the SBSCH.
2.Explore Alternatives:
Payroll software with integrated super (e g , Xero, MYOB, QuickBooks) Commercial clearing houses Super fund–operated clearing services.
3.Transition Early: Begin testing well before mid-2026 to avoid last-minute disruptions and potential late payment penalties.
4.Seek Professional Advice to identify the most efficient and compliant solution for your business.
If you need help finding payroll software alternatives, feel free to reach out to one of our team members. Pitcher Partners is here to help.
Payday Super: What Employers and Employees Need to Know About the New Legislation
On 9 October 2025, the Albanese Government introduced landmark legislation that will reshape how superannuation contributions are made in Australia Known as Payday Super, this reform mandates that employers pay super at the same time as wages, bringing significant implications for payroll processes, cash flow management, compliance, and employee retirement outcomes.
Key Changes at a Glance
Start Date: The new rules will take effect from 1 July 2026.
Super Payment Timing: Employers must ensure super contributions are received by the employee’s fund within seven calendar days of payday.
Compliance Enforcement: The ATO will use Single Touch Payroll (STP) and fund reporting to automatically detect super shortfalls
New Earnings Base: Super will be calculated using Qualifying Earnings (QE), which aligns with Ordinary Time Earnings (OTE) and includes salary sacrifice amounts.
Annual Contributions Cap: The maximum contributions base will now apply annually, rather than quarterly.
STP Reporting Update: Employers must report QE and super liability
PCG 2025/D5 – ATO’s Compliance Approach
The ATO has just released Draft Practical Compliance Guideline PCG 2025/D5, outlining how they will administer Payday Super during the first year of implementation (1 July 2026 – 30 June 2027). This guide is designed to give employers certainty and support during the transition.
Key Elements of the PCG include: Risk-Based Framework: Employers will be assessed as low, medium, or high risk based on compliance behaviour: Low Risk: Genuine efforts to pay on time and fix errors promptly
Medium Risk: Correct amounts paid but occasionally late or slow to update processes
High Risk: Underpayment history, miscalculated QE, or failure to act on known issues.
Assisted Compliance Period: For the first year, the ATO will prioritise education and guidance over penalties, provided employers act in good faith.
Practical Examples: The PCG clarifies how the risk levels apply. Here’s one example:
Example – Low Risk
An employer pays super contributions on time for most pay cycles. In one instance, a contribution is rejected by the employee’s fund due to incorrect details. The employer identifies the issue and resubmits the payment promptly, ensuring the shortfall is corrected.
ATO View: This employer is considered low risk because they acted quickly to fix the error and demonstrated genuine intent to comply.
Important Note
The PCG is not law but observing the principles acts as a safe harbour If you: Apply the PCG principles, Make genuine efforts to comply, and correct mistakes promptly, the ATO will employ their supportive framework measures, rather than imposing strict penalties. Negligence or inaction removes this protection.
Implications for Employers
Cash Flow Pressure - increased frequency of payments may challenge cashflow and liquidity.
System Updates - Payroll systems must be updated to handle QE reporting and 7-day super payments
Compliance Risk - Mistakes could lead to penalties, but the ATO’s assisted compliance approach offers a buffer during the first year.
Implications for Employees
The Payday Super reform is a major win for Australian workers, with several key benefits:
Employees will receive super contributions more frequently, allowing for earlier compounding of returns (faster retirement growth). Treasury estimates that a 25-yearold could be $6,000 better off at retirement under the new system.
Employees will be able to track super payments in near real-time via their fund accounts, making it easier to identify missed or delayed contributions.
The reform helps combat unpaid super, often referred to as wage theft, by enabling the ATO to act quickly on non-compliance. Employees can also report issues directly to the ATO or Fair Work Ombudsman.
With more frequent payments and improved visibility, employees are better positioned to make informed decisions about their retirement savings.
What Employers must do to prepare
1.Review Payroll Systems to ensure your software can support payday super payments
2 Plan for cash flow adjustment as more frequent payments may require enhanced budgeting strategies.
3.Educate your team to ensure payroll and finance staff understand the new rules.
4.Transition from SBSCH if you are using the ATO’s clearing house, engage an alternative solution prior to 30 June 2025.
At Pitcher Partners, we're here to help you navigate these changes with confidence, offering expert guidance and tailored solutions to keep your business compliant and future-ready.
