The exposure draft legislation to introduce Payday Super was released for consultation on 14 March 2025. This provides an overview of the key changes and considerations for next steps.
2025 isn’t a huge year for FBT legislative developments. Two important changes to be aware of relate to record-keeping simplifications and the end of the exemption for plug-in hybrid vehicles. This ultra-quick update will fill you in on what you need to know for the upcoming FBT return and things to keep in mind for next year.
The minor benefit exemption for items valued at below $300 and provided on an irregular and infrequent basis can help save time, effort and FBT cost. However, recent ATO decisions highlight the need to understand all the conditions to treat a benefit as minor. Taking a reasonable approach on frequency is essential. More complex scenarios such as benefits provided at the same occasion, to spouses, or splitting of benefits, may need further consideration.
Payday super takes effect from 1 July 2026. All steps in the process including determining, reporting, paying and clearing of funds into super accounts will need to happen in 7 calendar days of paying employees. There will be changes to the superannuation guarantee regime and Single Touch Payroll reporting.
