Super: Employers required to pay super on same day as payday
The Government has announced that it will amend the superannuation laws to require super to be paid on payday – a reform it says that “will benefit the retirement incomes of millions of Australians”. From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. By way of example, the Government says that by switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5% better off at retirement. It also said that more frequent super payments will make employers’ payroll management smoother with fewer liabilities building up on their books.
Draft leg instrument: cents per kilometre car rate
The ATO has issued draft legislative determination LI 2023/D12. It applies to eligible taxpayers who use the cents per kilometre method to calculate the income tax deductions for their work-related car expenses. It will set the “cents per kilometre rate” for calculating work-related motor vehicle expense deductions at 85 cents per kilometre for the income year commencing 1 July 2023.
