Further PayDay Super Comments

• First, the disregarding of all or part of the employer’s contribution in respect of the June 2026 quarter is automatic (that is, it does not depend on the Commissioner exercising any discretion – the Commissioner must simply determine the existence of the relevant facts);

• Second, the excess amount (assuming it has arisen solely due to the June 2026 quarter SG contributions) are disregarded – they are not reallocated to another financial year.

• Third, the transitional measure will also apply to employer contributions made pursuant to an industrial award (as these are mandatory) which applies to the employee if the award contribution is required to be made in respect of the June 2026 quarter and the award contribution is made in the period 1 July to 28 July 2026 (even if the employee ceased employment after 30 June 2026).

• Fourth, as the excess amount is disregarded (rather than reallocated) the excess amount does not reduce the unused concessional contribution cap space which can be carried forward to the 2026/27 financial year. Consequently, in respect of the 2026/27 financial year the employee could make personal deductible contributions to fully exhaust that available carry forward cap space without concern about June quarter 2026 SG/Award contributions.

• Fifth, the transitional measure does not apply to salary sacrifice contributions.

• Sixth, the ATO will automatically determine whether any SG/Award contributions are within the transitional measure and determine the amount, if any, which is to be disregarded.

• Seventh, if the employer advanced paid its SG/Award contributions in respect of the June 2026 quarter, by paying them before 1 July 2026 and this gives rise to excess concessional contributions for the 2025/26 financial year, the transitional measure will not apply.

• Lastly, if the employee has no excess concessional contributions (ignoring the carry forward of the unused concessional contribution cap space) for the 2026/27 financial year, there is nothing to disregard.

• The transitional measure is just that, a transitional measure which applies only to the 2026/27 financial year.

• Once enacted the transitional measure will be in the Income Tax (Transitional Provisions) Act 1997 rather than in Division 291 of the Income Tax Assessment Act 1997.

For further information, please do not hesitate to contact our helpdesk on 02 8296 6266 or email info@supercentral.com.au.