The way the cap is applied will change under Payday Super.

The current quarterly maximum SG contributions base will be replaced with an annual Maximum Contributions Base (MCB).

Once an employee’s qualifying earnings for the financial year reach the annual MCB, the employer is not required to make further SG contributions for that employee for the remainder of the financial year.

You may need to review your payroll system rules to ensure the MCB is applied correctly on an annual, per-employee basis.

Please note: The Maximum Contributions Base (MCB) sets the minimum level of superannuation required under legislation. Employers may have separate employment or remuneration arrangements that provide for contributions above the MCB. Contributions above the MCB may be subject to different tax treatment for employees.