The Australian Tax Office has warned businesses to be prepared for a major change in the payment of superannuation from July 1, 2026.
Under the new PayDay Superannuation rules, companies will have to pay their employees super each pay day.
Currently more than half of employers do not pay super any more frequently than quarterly.
ATO Deputy Commissioner Emma Rosenzweig said the transition may require businesses to make changes to some of their processes.
“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,” she said.
“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.”
Ms Rosenzweig said the change in frequency supported timely reporting to the ATO.
It also made it easier for those who were doing the right thing and harder for those deliberately avoiding paying their employee entitlements.
“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,” Ms Rosenzweig said.
‘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.”
More information on compliance is available here.
