The transition to Payday Super may create an unusual one-time concessional cap risk in 2026–27. According to FirstTech, some employees may effectively receive up to 15 months of SG contributions in one financial year.
How It Happens:
- June quarter 2025–26 SG paid in July 2026
- Regular 2026–27 Payday Super SG also begins immediately
Result:
Some workers may receive:
- Prior quarter SG
- New year SG
- Salary sacrifice
- Personal deductible contributions
…all within one cap year.
Why This Is Important:
This could:
- Trigger excess concessional contributions
- Accidentally use carry-forward caps
- Reduce tax efficiency
Government Response:
Technical amendments have been announced, but details remain unclear as at March 2026.
Action Step:
Employees making additional concessional contributions in 2026–27 may need especially careful planning.
Need Help Preparing for the Payday Super Transition?
The move to Payday Super may temporarily increase concessional contribution risks for some employees during 2026–27.
Get in touch with our team here to review your contribution strategy and help avoid unexpected cap issues.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.