Payday Super – Legislation introduced for concessional cap transitional rule
New Payday Super legislation addresses concessional contributions cap issues for 2026/27, but salary sacrifice and early payments remain key concerns.
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By: Elizabeth Lucas
17 Jan 2025 4 min read
With significant updates on the horizon, including the cessation of the FBT exemption for plug-in hybrid electric vehicles (PHEVs), the introduction of payday superannuation rules, and the fast-approaching end of the FBT year, staying ahead of these changes is crucial.
The FBT exemption available for PHEVs ceases as of 1 April 2025, subject to some transitional rules. There has been a lot of confusion about how the transitional rules apply. In order to qualify for FBT exemption after 31 March 2025, the following criteria will need to be met:
Whilst a financially binding commitment might be in place prior to 1 April 2025, if the car has not been available for private use before this time, the FBT exemption will not apply. This means that PHEVs ordered prior to 1 April 2025 but not delivered until after that time will not qualify for FBT exemption. See our further information regarding the exemption phase out here.
The new payday superannuation rules are slated to be applicable from 1 July 2026, although the legislation has not been released yet – even in draft. Whilst design rules were released in late 2024 (see our summary here), there are still many unanswered questions regarding the specific details.
Employers should ensure they are on top of superannuation liabilities to date in readiness for the change. Some typical areas where we find errors are:
As we approach the end of the FBT year, some common compliance issues to consider are:
Stay ahead of the changes and ensure your payroll compliance. Register for our upcoming webinar on 4 March 2025 to gain deeper insights into the FBT exemption phase out, payday superannuation rules, and year end compliance strategies. Don’t miss this opportunity to get expert advice and practical tips —secure your spot today.
New Payday Super legislation addresses concessional contributions cap issues for 2026/27, but salary sacrifice and early payments remain key concerns.
Draft legislation proposes the removal of the FBT exemption for electric vehicles, replacing it with a 25 per cent concession from 1 April 2027 or 1 April 2029 depending on vehicle value. Employers should assess the impact on salary packaging arrangements and existing EV commitments.
The ATO's draft determination SGD 2026/D1 clarifies how businesses should calculate superannuation guarantee obligations for contractors. Learn the compliance implications ahead of Payday Super.