Business restructures and super¶

Businesses change over time. A cafe is sold to new owners. A sole trader moves to a company. A family business is handed to the next generation. When any of this happens, one question matters for payroll: who pays the super now?

The short answer is that super obligations do not vanish in a restructure. The entity that employs a person is the one responsible for that person's super.

In one line

Super obligations do not disappear when a business changes hands or structure. The entity that employs a person is responsible for that person's super and for keeping records.

Why this matters¶

During a sale or restructure it is easy for a super payment to slip through the cracks, because it is not always clear which entity owns which pay period. Getting this right means employees keep getting their super on time, and neither the old nor the new entity ends up with a missed payment.

What you will learn¶

Who is responsible for super after a restructure
What carries across when employees transfer to a new entity
When to get advice for a specific restructure

Understanding the concept¶

Super follows the employing entity. The ATO's guidance is that whoever employs a person is responsible for that person's super. If a business is sold and employees move across to a new owner, the new employing entity takes on the super for the work done from that point. The old entity is still responsible for the super owing for the work done while those people worked for it.

When employees transfer, some arrangements can carry across. Employees generally keep their choice of fund — the super fund they nominated — so in many cases the new employer keeps paying into the same fund the employee already had. This is not a promise for every situation, but it is a common outcome, and it is why keeping the employee's fund details on file matters during a handover.

Two duties stay with each employing entity no matter how the business is structured: paying the right super by the due date, and keeping records. The ATO explains that employers need to keep super records for at least five years. In a sale or restructure, those records need to be handed over or kept safe so both entities can answer questions later.

Restructures come in many forms — a sale, a new company, a partnership change, a succession — and each has its own tax and legal detail. This lesson covers the super principle at a high level. For a specific restructure, get advice from your accountant or adviser.

For accountants & bookkeepers

The ATO's changing/selling/closing-a-business guidance treats super as an obligation that must be finalised for the relevant period, not one that transfers automatically with the assets. Where a new entity begins employing the same people, it sets up as an employer in its own right — its own super due dates, its own record keeping, and its own standard choice process where a new fund choice is needed. A small business restructure roll-over may address the tax side of moving assets, but it does not remove the day-to-day super obligations of each employing entity.

Example¶

A cafe is sold to new owners, and the staff keep their jobs under the new owner. The previous owner works out and pays the super owing for all the work done up to the handover date, and keeps those records. From the handover date, the new owner becomes the employing entity and starts paying super for the staff — in most cases into the same super funds the staff already had. Both owners keep their super records, so if a question comes up later, either can show what was paid and when.

Common mistakes¶

Assuming the sale wipes the old entity's super owing — the old entity still owes super for the work done before the handover.
Thinking super transfers with the business automatically — each employing entity is responsible for its own period.
Losing the employee fund details in the handover — this can break choice-of-fund continuity and slow down the first pay run.
Not keeping or handing over super records — records still need to be kept.

How this works in myaccountant¶

In the app — each employing entity runs its own payroll in its own business, pays super for its own employees, and keeps its own records. If a new entity takes over, it is set up as its own business in myaccountant and runs its own pay runs and super from the handover date. The app does not move super obligations between businesses for you — that follows the real employing arrangement.

Key points¶

Super obligations do not disappear in a restructure.
The entity that employs a person is responsible for that person's super.
The old entity still owes super for work done before the handover.
Employees generally keep their chosen super fund when they transfer.
Each employing entity keeps its own super records.
Get advice for the specifics of your restructure.

Learn next¶

General information only — not tax, super or financial advice.

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