The kids have moved out, the garden takes all weekend, and the stairs aren’t getting any easier. Plenty of long-time Northern Beaches homeowners are thinking about selling the family home and moving somewhere smaller.
If that’s you, there’s a super rule worth knowing about before you sign anything: the downsizer contribution.
What is a downsizer contribution?
It lets eligible people aged 55 or older put up to $300,000 from the sale of their home into super. A couple can contribute up to $600,000 between them.
The big advantage is that it doesn’t count towards your concessional or non-concessional contribution caps. That’s useful for people who would otherwise struggle to get much money into super later in life. Once inside super, investment earnings are taxed at no more than 15%, and can be tax-free once you move into a retirement income stream (within limits).
Despite the name, you don’t have to buy a smaller home. You don’t have to buy another home at all.
Who’s eligible?
You need to meet all of these conditions:
You’re 55 or older when you make the contribution. There’s no upper age limit and no work test.
You or your spouse owned the home for at least 10 years.
The sale qualifies at least partly for the main residence CGT exemption.
You make the contribution within 90 days of receiving the proceeds, which is usually settlement day.
You give your super fund the ATO’s Downsizer contribution into super form before or at the time you contribute.
You haven’t made a downsizer contribution before. It’s a once-in-a-lifetime opportunity.
Your spouse can also make a downsizer contribution even if they weren’t on the title, as long as the other conditions are met.
Traps to watch for
The Age Pension assets test. Your home is exempt from the assets test, but money in super generally isn’t once you reach Age Pension age. Moving sale proceeds into super can reduce or remove a pension entitlement.
It isn’t tax deductible. It’s a top-up to your retirement savings, not a way to reduce this year’s tax.
The 90-day deadline is easy to miss. Settlement, moving and buying a new place all happen at once. Check that your fund can accept the contribution well before settlement.
You only get one go. Think about timing, how much to contribute and which spouse contributes before you act.
Plan before you list
The best time to think about a downsizer contribution is before the property goes on the market, not after settlement. It’s also a good moment to check who would receive your super if something happened to you, because super doesn’t automatically follow your Will. We cover that in Part 3 of our weekly Insights series.
Thinking about selling the family home? Get in touch with our team in Dee Why to talk through the tax and super side before you sign.
This article is general information only and isn’t personal tax or financial product advice. Whether a downsizer contribution suits you depends on your circumstances, so please seek advice from us and a licensed financial adviser before acting.
A busy week for Northern Beaches business owners: the ATO is retiring credit card payments, card surcharges are gone, rates have moved again and the first 2026-27 deadlines are weeks away.
ATO to stop accepting credit cards after 30 November
On 1 October the ATO announced it will no longer accept credit card payments for tax debts after 30 November 2026. BPAY, direct debit from a bank account and payment plans remain available. If your payment plan debits a credit card, the ATO will write to you, and you will need to switch method before your first instalment due after 30 November.
Card surcharges are off from 1 October
Under new card network rules, businesses can no longer add a surcharge when customers pay with Visa, Mastercard, American Express or eftpos, according to ACCC guidance updated on 2 October. Card costs now need to be built into your pricing, and displayed prices must be the total the customer pays. A disclosed discount for cash or PayID is still allowed, but relabelling a surcharge as a service fee is likely to be treated as misleading. Check your point of sale settings now.
Cash rate rises to 4.60 per cent
The Reserve Bank lifted the cash rate by 25 basis points to 4.60 per cent on 29 September, citing higher global energy prices. If you carry variable rate debt or equipment finance, refresh your December quarter cash flow forecast.
Key dates: 28 October BAS and 31 October tax returns
The July to September BAS and PAYG instalment are due on 28 October, with an extra two weeks if you lodge through a registered agent. Sole traders and individuals lodging their own 2025-26 return must do so by 31 October. To use a tax agent for the first time, or switch agents, the ATO says you need to be on their client list before 31 October to access later lodgment dates.
Payday Super: check your first quarter
Super on wages paid since 1 July 2026 must reach the employee’s fund within 7 business days of payday, with up to 20 business days for a new employee’s first contribution. Late contributions attract the super guarantee charge, so reconcile what your payroll software has sent against what each fund has received.
Free AI workshops in Warriewood on 27 October
For NSW Small Business Month, Northern Beaches Council is running two free AI Made Simple for Small Business workshops at 2/4 Jacksons Road, Warriewood on Tuesday 27 October: AI for Marketing from 2.30pm and AI Tools for Small Business from 6pm. Places are limited to 45 eligible local businesses. Hundreds more Small Business Month events run statewide through October.
What this means for you
Most of these changes land within eight weeks, so set aside an hour to update your ATO payment method, review pricing and diarise 28 and 31 October. This is general information only. Book a call with our Dee Why team to talk through what applies to your business.
As businesses continue adjusting to Payday Super, we’re hearing a number of common questions and misconceptions. While some assumptions may seem harmless, misunderstanding the rules can lead to rejected contributions, payment delays and extra admin. We’ve separated fact from fiction to help you manage super contributions with confidence.
Fiction: “I can still pay super quarterly, as long as the total is right.”
Fact: Quarterly payments no longer meet the rules. Since 1 July 2026, employers must pay super so that the employee’s fund receives it, with enough information to allocate it to the employee’s account, within 7 business days after each payday. This is how you avoid the super guarantee charge. That applies whether you pay staff weekly, fortnightly or monthly.
Fiction: “Seven days means seven calendar days from when I send the payment.”
Fact: The deadline counts business days, and it runs from payday, not from when you make the transfer. The clock starts on the day you pay your employee’s qualifying earnings. The contribution must also be received by the fund within that window. Clearing houses and bank transfers can take several days, so leave a buffer. As one example, Xero says its auto super service typically gets contributions to funds within four business days.
Fiction: “Once I’ve pressed ‘pay’, my obligation is done.”
Fact: Your obligation is met only when the fund receives the contribution and can allocate it. Incorrect member details, a closed account or an invalid USI can all cause a rejection. Funds now have to return rejected contributions within 3 business days, down from 20.
Fiction: “If a contribution is rejected, I get a fresh 7 days to fix it.”
Fact: There is no reset. You need to fix the problem and resubmit the contribution within the original seven-day window to avoid penalties. This is why accurate employee super details matter more than ever.
Fiction: “New starters must be paid within 7 business days, just like everyone else.”
Fact: New employees get a little more time. Funds must receive the contribution within 20 business days of payday for new employees, employees who have recommenced employment, and employees who have changed super funds. After the first contribution, the standard 7 business day deadline applies. Collect super choice forms at onboarding so the extra time isn’t used up chasing paperwork.
Fiction: “A bonus paid between paydays needs super within 7 days of the bonus.”
Fact: If you pay qualifying earnings outside the normal pay cycle, such as a bonus between regular paydays, the super on that payment is due within 7 business days after the next regular payday.
Fiction: “Super is still calculated the same way, on ordinary time earnings.”
Fact: Super is now calculated on qualifying earnings, a new concept that replaces ordinary time earnings. Qualifying earnings include ordinary time earnings, commissions, eligible salary sacrifice amounts and payments to some contractors paid mainly for their labour. The super guarantee rate is 12% of qualifying earnings. You also need to report both qualifying earnings and super liability through Single Touch Payroll each payday, on a year-to-date basis.
Fiction: “I can keep using the ATO’s Small Business Superannuation Clearing House.”
Fact: The ATO’s Small Business Superannuation Clearing House closed on 30 June 2026, so employers need an alternative. Most payroll software, including Xero, now offers an integrated super payment option.
Fiction: “The ATO will penalise every late payment straight away.”
Fact: The super guarantee charge still applies to late payments, but the ATO has released PCG 2026/1, which sets out a risk-based compliance approach for the first year (1 July 2026 to 30 June 2027). If an employer has made a genuine effort to pay on time and in full, and a payment is delayed for reasons outside their control, the ATO will consider how quickly the employer fixes the problem. This is a transition allowance, not a free pass. Businesses should aim to comply fully now.
How we can help
Payday Super changes how cash flow, payroll and compliance fit together. At TaxAssist Accountants Dee Why, we can review your payroll setup, check your STP reporting of qualifying earnings, help you set up a reliable super payment process, and work through any rejected or late contributions with you. Contact our team to make sure your business is on track.
This article is general information only and does not take into account your specific circumstances. Please seek professional advice before acting.
The biggest change to employer super obligations in more than a decade took effect on 1 July 2026. If you employ staff on the Northern Beaches, here is what you need to know.
What changed
Super is paid with wages. Contributions must be received by the employee’s fund within 7 business days of payday. The old quarterly deadlines are gone.
SG rate is 12% of qualifying earnings, which now explicitly includes ordinary time earnings, commissions and salary-sacrificed amounts.
The ATO Small Business Superannuation Clearing House has closed. Employers who used it need another payment channel — for most of our clients that’s the auto super feature in Xero, MYOB or QuickBooks.
Stapled fund lookups can now be requested earlier in the onboarding process, which helps you pay new starters on time.
What happens if you’re late
The Super Guarantee Charge has been redesigned. It now includes the shortfall, interest compounding daily at the general interest charge rate, and an administrative uplift. One upside: the redesigned charge is tax deductible, which the old SGC was not. It is still far cheaper to pay on time.
Three things to check this week
Your pay run timing. If you pay fortnightly on a Thursday, super must be in the fund by the following Friday week. Processing on payday is the safest habit.
Your clearing house. Confirm your software’s super payment is switched on and that fund details for every employee are current. Rejected payments don’t count as received.
Cash flow. Super now leaves your account every pay cycle rather than every quarter. Adjust your cash-flow forecast accordingly.
If you’d like us to review your payroll setup or move you off the closed clearing house, book a call or phone (02) 9045 1511.
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