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What real estate and construction businesses need to know
In this conversation, Anika Reside, National Head of Real Estate and Construction, is joined by Kimberley Stefan, Director in Grant Thornton Australia’s Employment Solutions team, to unpack what Payday Super means in practice, why contractor arrangements are a key risk area, and what businesses should be doing now to prepare.
Listen back for practical insights into when contractor arrangements can trigger super obligations, how Payday Super brings those issues to the surface sooner, and why early review matters ahead of the new regime.
From 1 July 2026, super will generally need to be paid within seven business days of payday. This shifts the payment of superannuation guarantee from a quarterly process into the regular payroll cycle, bringing added operational and compliance pressure for employers.
Engaging someone as a contractor does not necessarily remove superannuation obligations. Where an arrangement is wholly or principally for an individual’s labour, super may still apply – even where the contractor invoices through an ABN. This is a common risk area in project-based industries such as real estate and construction.
Under the current quarterly system, contractor misclassification issues can take time to emerge. Under Payday Super, those issues are more likely to arise as payments are made, making upfront classification and regular review far more important.
Changes to the superannuation guarantee charge will significantly increase the financial impact of non-compliance. A new administrative uplift, calculated as a percentage of the shortfall, will replace the previous fixed fee – materially raising the cost of late or missed payments.
With commencement not far away, businesses should be reviewing contractor arrangements now, particularly where individuals are engaged directly and the arrangement is primarily for labour or personal services. Payroll and finance systems should also be assessed to ensure they can support more frequent super payments.
For real estate and construction businesses, Payday Super brings contractor classification, payroll processes and superannuation compliance into sharper focus. The combination of tighter payment timeframes and increased penalties means issues that were once manageable can quickly become more complex and costly.
We work with clients to review contractor arrangements, assess superannuation risk, and prepare payroll and finance systems for Payday Super. Whether you are reviewing existing engagements or planning ahead for 1 July 2026, we can help you identify issues early and navigate the transition with greater confidence.
For more information, please contact:
Anika is a Partner in Grant Thornton's national indirect tax team and specialises in GST and fuel tax. Anika is committed to delivering an exceptional client experience while solving complex problems.
Kimberley helps organisations manage complex employment tax and workforce compliance obligations, combining deep technical expertise with practical, commercially focused and technology-enabled solutions that support strong governance and sustainable business outcomes.
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