The ATO is urging employers to act now and prepare for Payday Super.
With 5 weeks left until Payday Super takes effect, over half of employers are still not paying super more frequently than quarterly. The ATO is urging employers to act now and prepare so they can start paying super each payday.
ATO Deputy Commissioner Emma Rosenzweig said the transition may require businesses to make changes to some of their processes, but employers who start preparing now can make the transition successfully.
‘We understand Payday Super makes changes to obligations and processes for businesses which is why it’s so important to act early, so you’re well placed ahead of 1 July.’
Around $6 billion in superannuation is currently unpaid to workers. Payday Super will close this gap by ensuring contributions are paid on time, every time.
‘It’s important to make clear that for most employers, Payday Super won’t change the amount of super you are paying to your employees, just the payment frequency.’
‘The change in frequency supports timely reporting to the ATO to make it easier for those who are doing the right thing and harder for those deliberately avoiding paying their employee entitlements.’
During the first year of Payday Super, the ATO will take a reasonable and practical approach to compliance, supporting businesses to make these payments on payday while focusing enforcement on those who deliberately do the wrong thing.
‘We understand when something is new you might not get it perfect the first time, but it’s important to start, have a go, give yourself as much time as possible to fix any errors as they occur.’
‘If we can see employers making effort to move towards the payday model and fixing errors quickly, they won’t be the focus of any compliance actions from the ATO in the first year,’ Ms Rosenzweig said.
More information is available in our practical compliance guideline. Additional information to help employers manage the changeover including on Single Touch Payroll, closure of the Small Business Superannuation Clearing House and reporting timing considerations are available on our website.
‘Paying super each payday starts from 1 July – take advantage of how Payday Super can streamline processes for your business.’
‘We’ve heard from small businesses that moving to more frequent payments has made it easier to manage cash flow, so I encourage employers to consider how paying super on payday can support their cash flow planning.’
‘Act now and be ready – ensure your whole of team understands what Payday Super means, and ensure your systems and software are ready to roll out the updates by 1 July,’ Ms Rosenzweig said.
Hear what Tony has to say about Payday Super
Melbourne small business owner, Tony, has found adopting Payday Super processes to be advantageous to cash flow planning and processing requirements.
‘When I first started running the business, I was paying super on a quarterly basis, and I had to dip into my private cash reserves when my business wasn’t doing well.’
‘But when I moved to monthly, even weekly payment arrangements, it became less of a financial burden, so I think paying on Payday will be a very favourable outcome for small business operators,’ Tony said.
Tony also found having proper and accountable systems makes it easy to comply with superannuation and tax obligations.
‘A simple digitised accounting system can make it much easier to prepare accurate monthly reports,’ Tony said.
Notes to journalists
- Deputy Commissioner Emma Rosenzweig is available for interviews on request.
- More information about our first-year compliance approach available in PCG 2026/1 | Legal database
- More information to manage super during the changeover is available on our website.
- Payday Super checklist is available for download
- A high-resolution headshot of Deputy Commissioner Emma Rosenzweig is available for download from our media centre.
- Pre-recorded video and audio grabs of Deputy Commissioner Emma Rosenzweig are available for download from our media centre.
- ATO stock footage and images are available for use in news bulletins from our media centre.
Contact details:
[email protected] | 02 6216 1901