Payroll Highlights from the 2024 Budget.

The federal government announced it’s 2024-25 budget measures last night, with very little changes impacting the payroll profession in the near future.?

Stage 3 tax cuts

The government reiterated that the stage 3 tax cuts will be going ahead as expected from 1 July 2024.

*does not include the medicare levy

Superannuation on government paid parental leave

From 1 July 2025 the government will pay?superannuation?on the government-funded Paid Parental Leave. This will apply for births and adoptions on or after 1 July 2025.

This will be administered by the ATO, meaning that the ATO will pay the superannuation contribution directly to the employees’ superannuation fund. Therefore, this will not have an impact on employer obligations regarding government paid parental leave.

Payday Superannuation - Update

Leading up to the 2023/24 Budget, the Government declared a significant change regarding superannuation guarantee (SG) entitlements. Starting 1 July 2026, employers will be required to pay employees' SG contributions concurrently with their salary and wages, a system dubbed "payday superannuation." This adjustment contrasts with the current requirements to make SG contributions quarterly.

There were no significant updates or details provided in the 2024/25 budget announcement regarding the implementation of payday super, however it has pledged $60 million in funding over four years, to be allocated to the Productivity, Education, and Training Fund, with a portion designated to support workplaces in adapting to the changes, including the transition to payday superannuation. This funding will commence in the 2024/25 financial year.