Federal Budget 2023 Highlights:
- From 2026, employers must pay super at the same time as wages,
- $40m to fund an ATO compliance program targeting unpaid super,
- Broader crackdown on unpaid tax and super by medium and large businesses forecast to net $440m over four years,
- Increased tax on super over $3m from 2026
Streamlining superannuation and salary payments for employees –
Starting 1 July 2026, employers will be mandated to disburse employees’ superannuation simultaneously with their wages. This change will empower employees to monitor their entitlements and confirm timely, complete payments.
Enhancing the visibility of unpaid super for the ATO –
The government will allocate $27 million in 2023-24 to the ATO for bolstering data capabilities, including large-scale matching of employer and super fund data. Additionally, $13.2 million will be provided for the ATO to consult and co-design a cutting-edge compliance system with stakeholders. This system will proactively detect underpaid or unpaid super in near-real time.
Strengthening unpaid super recovery measures for the ATO –
The government plans to establish improved unpaid superannuation recovery targets for the ATO. Starting 2023-24, the ATO’s performance will be evaluated based on the proportion of super payments made to employees and the amount of super raised and distributed within 12 months.
Enhancing Fairness and Sustainability in the Superannuation Framework –
Commencing 1 July 2025, earnings on superannuation balances exceeding $3 million will be subject to a higher concessional tax rate of 30%. Meanwhile, earnings on balances below $3 million will maintain the existing concessional tax rate of 15%. This change aims to promote equity and long-term stability within Australia’s superannuation system.