For employees earning above the Maximum Contributions Base, Payday Super may significantly alter when super is paid — even if the total annual SG amount remains similar.
What Changes:
Under the new annual MCB, once year-to-date qualifying earnings exceed the threshold, SG obligations stop for the rest of the financial year.
Example:
As outlined in the case study on pages 4–5:
A high-income employee earning double the MCB may receive their full annual SG by December, rather than spread across the year.
Implications:
For employees:
- Earlier concessional cap usage
- Potential employer transition complications
- New job SG overlap risks
For employers:
- Front-loaded payroll expenses
- Cash flow forecasting distortions
- Potential duplicate SG liabilities after staff turnover
Need Help Preparing for the New MCB Rules?
The new annual MCB framework may affect SG timing, concessional caps, and payroll planning for high-income earners and employers.
Get in touch with our team here to discuss how the changes may impact your situation.
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.