15/07/2026
ATO Outlines First Year Compliance Approach for Payday Super (From 1 July 2026)
The Australian Taxation Office (ATO) has released draft guidance outlining its proposed compliance approach for the first year of Payday Super, commencing 1 July 2026.
The ATO recognises that many employers will need time to update payroll systems and business processes to meet the new requirements. During the first year, the ATO has indicated it will generally take a practical, risk based approach for employers who are making a genuine effort to comply.
Under the draft guidance:
Employers paying super with each payday and correcting any errors as soon as reasonably practicable will generally be considered low risk and are not expected to be the focus of ATO compliance activity.
Employers who continue making quarterly super payments after 1 July 2026 may be considered medium risk.
Employers with unpaid super beyond the applicable due dates may be considered high risk, with ATO compliance efforts expected to focus on these cases first.
The ATO has also indicated that employers making a genuine effort to comply would not generally be expected to lodge a Voluntary Disclosure Statement (VDS) solely because of implementation issues, although every situation should be assessed on its own circumstances.
What this means for employers
Businesses should be preparing to pay superannuation in line with each payroll from 1 July 2026, rather than continuing quarterly payment arrangements. If implementation issues occur, employers should continue working towards compliance and rectify any identified errors promptly.
This update reflects the ATO’s draft compliance approach and is intended to support employers who are actively transitioning to the new Payday Super requirements. It is not intended as a transition period for employers who choose not to implement Payday Super.
This post provides general information only and should not be relied upon as legal, taxation, or financial advice. Businesses should seek professional advice based on their individual circumstances.
Source: ATO Draft Practical Compliance Guideline PCG 2026/1.
