High Court decision strengthens GST refund positions for developers
Client AlertHigh Court decision strengthens GST refund positions for developers
From 1 July 2026, two significant changes take effect: Payday Super will require superannuation to be paid with every payroll run, and reforms to the superannuation guarantee charge framework will substantially increase the financial consequences of non-compliance. For real estate and construction businesses that rely heavily on contractors, the pressure to identify and manage super obligations correctly, and early, has never been greater.
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.
Key themes
1. What Payday Super changes for employers
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.
2. Why contractors are a superannuation risk area
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.
3. Why contractor issues will surface sooner
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.
4. The cost of getting super wrong is increasing
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.
5. What businesses should be doing now
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.
We’re here to help
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 Reside
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 Stefan
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.
Industry
Real Estate & Construction
Supporting the sector as it navigates continued economic and social shifts
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