Pay Day Super - STP Maximum Super Contribution Base Capping via SMN/PTA using SALX
We have identified an issue with Maximum Contribution Base (MCB) capping.
When the MCB threshold is reached and the excess super amount is rolled into SALX (cash gross), the system is not including the SALX amount in Gross or Taxable Gross calculations. Instead, CPA is treating the amount as an “Allowance After Tax”.
As a result, no PAYG withholding is being calculated on the SALX amount, which appears to be incorrect.
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We have identified an issue with Maximum Contribution Base (MCB) capping.
Where is the Pay Day Super - STO2 Template
As per attached ATO in regard to MCB is $270,830, will Chris 21 update to the nearest $10 multiple so it's exactly $32500 for high income earners in the TXP screen. (under maximum super contribution base)
After selecting STP Maximum Super Contribution Base Capping in CFP, we have identified issue in how system applied capping.
We created a new allowance code MCBE and in the CAL it shows MCBE will be paid in excess, however in CPA screen, it doesn't show?
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We are aware of the problem with tax not being calculated on the excess super assigned to a salary code. Review and corrections underway. Further information to be provided at a later date.
Hi Dale,
Has this issue been addressed with the 8.37.11 or is it still being worked on?
We are currently in UAT on our PPE and need look closely at any developments.
Hi Duncan, I just checked with the team and they tell me that 8.37.11 handles the reduction of the QE for salary sacrifice & other deductions. The taxing calculations on excess super is still being worked on and will be available in a subsequent release. It is part of some broader changes. I don't have an ETA as yet.
Hi Dale, is there an update on the ETA for the taxing calculations on excess super.
Thanks,
Sally.
Hi Sally, I just checked with the team and there is no ETA as yet. Rest assured, they are working on delivering ASAP and we will advise our clients.
We're 3 pay runs away from EOFY and no ETA.
This is cutting it fine.
Hi Duncan, Thank you for raising this, we appreciate the detail and understand your concern. Our current expectation is that this issue will not become operationally relevant until September, and our team is actively working on it in the meantime. We are monitoring the situation closely and will continue to keep you updated as progress is made.
Hi Dale,
Could you please clarify what you mean by "operationally relevant until September"?
I'm having difficulty understanding how this works in practice. If the PDS becomes effective from 1 July 2026 and we're required to contribute 12% per pay, a very high-income earner (for example, a CEO paid monthly) could potentially reach their superannuation cap and exceed it in their first July 2026 pay cycle.
In that scenario, the excess super contributions need to be redirected or rolled over to SALX from that first pay, rather than waiting until September?
I would appreciate any clarification you can provide.
Regards,
Josh
Ok just to clarify your detailed explanation, the problem with tax not being calculated on the excess super assigned to a salary code currently being worked on and being delivered ASAP won't be relevant until September.
Rightio.
Sorry Duncan, can you clarify further?
Are you saying the fix is due in September?
Dale has stated that an identified problem with tax calculations is being worked on and is being delivered ASAP. However then says the issue won't become operationally relevant until September....so i was just reiterating what seems to be a confusing message from Frontier as to the importance of the problem.
My apologies Duncan :(
For some reason I thought that was a message from Frontier/Dale that I was responding to - not yourself. Sorry to confuse.
Thank you for raising this, we recognise the concern (particularly given the proximity to EOFY).
PDS super updates to CHRIS were released last month, and an issue was identified impacting Maximum Contribution Base (MCB) handling. We acknowledge this is not ideal, particularly for customers with high-income earners who may be affected from the start of the new financial year.
Please be assured this has been prioritised internally, and our teams are actively working on a resolution with urgency.
We will provide an updated timeline for delivery early next week. For those that may be impacted, we encourage you to reach out to your Account Manager directly who will be able to share interim guidance required to support impacted scenarios.
We appreciate your patience and will continue to keep you updated.
Morning Frontier,
Could you please provide an update on this. I have reached out to our Account Manager as per the recommendation in the above post, but I haven't had an update from them either. Also keen to receive the "interim guidance" as we will be impacted in the first pay run.
Thanks,
Sally.
Thank you for your patience while we worked through this matter. An update will be emailed to all Australian clients this evening. The same information will be made available on the PayDay Super page here.