The rewrite of the existing superannuation guarantee (SG) law introduces many new definitions, and strips away the significance of quarterly compliance, replacing it with ongoing obligations aligned to paydays. But with a couple of exceptions, the rewrite does not dramatically affect the technical mechanics of superannuation.

Where there is a dramatic effect is across the operational sphere, such as when and how a shortfall is assessed and the financial consequences. Deductibility will no longer be denied where the SG charge is imposed, but the increase in interest, introduction of compounding and higher base administration component all have the potential to hugely increase costs for employers. This has been done deliberately to incentive employers to invest in strong compliance and governance.