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For many Australians, superannuation is one of the most important long-term financial tools, yet it can sometimes feel complicated or distant. 

One concept gaining attention (and legislative action) is payday super, a practical approach designed to help employees make consistent contributions and maximise retirement outcomes. 

What Is Payday Super?

Payday super isn’t a new type of super fund – it’s a way of aligning contributions with your regular pay schedule. Instead of making contributions quarterly or annually, payday super contributions are deducted and invested each pay cycle, whether that’s weekly, fortnightly, or monthly. This system helps workers contribute more consistently and keeps superannuation top of mind.

From 1 July 2026, employers will be required to pay their employees’ superannuation contributions at the same time as paying qualifying earnings (their pay) on payday, and be received by the super fund within 7 business days. The super guarantee amount from 1 July 2026 will be 12% of qualifying earnings (including ordinary time earnings, salary sacrifice contributions, and other amounts currently included in an employee’s salary or wages for super guarantee purposes).  

Payday super can also be designed to target specific needs, such as helping younger workers start building wealth early, encouraging voluntary contributions, or assisting those with irregular income to smooth their super savings. Making contributions a routine part of every pay cycle reduces the temptation to delay or skip saving.

Why It’s Important

Superannuation is designed to provide financial security in retirement, but its effectiveness depends heavily on time, consistency, and compounding. Regular payday contributions mean your super has more frequent opportunities to grow through compound interest, turning even modest contributions into significant retirement savings over decades.

Consistency is especially important for people who may not actively manage their superannuation or who struggle with irregular incomes. By contributing each pay cycle automatically, payday super ensures retirement savings are less reliant on occasional lump-sums or last-minute top-ups.

What It Should Mean for Retirement Outcomes

The long-term impact of payday super can be substantial. For example, someone who contributes a small amount regularly from their first job can see their super grow more than someone who waits until later in their career to make large, irregular contributions. The magic lies in starting early and letting the money work over time.

Additionally, regular contributions can reduce the stress of “catching up” later in life, help smooth income fluctuations, and provide a clear picture of how much you’re saving for retirement. Over time, consistent contributions not only build a larger nest egg but also provide financial confidence and peace of mind in planning.

Making Payday Super Work for You

To get the most out of payday super, it’s important to understand your fund’s rules, fees, and investment options. Combining compulsory employer contributions with optional salary-sacrifice contributions can further boost retirement outcomes. Reviewing your super periodically ensures contributions are aligned with your goals and that your fund continues to perform effectively.

Payday super is about simplicity, consistency, and harnessing the power of compounding over time.

 Embedding contributions in each pay cycle makes superannuation a routine part of your financial life, helping Australians of all ages work toward a more secure and comfortable retirement. 

Starting early and staying consistent is the key – and Payday Super is a tool that hopes to make that easier.

If you are a business that is looking to get its systems up-to-date when it comes to the upcoming Payday Super deadline (1 July 2026),  why not speak with one of our trusted team to find out how we can help? 

After a proper break, getting back into business mode can feel tough. January can feel like one long Monday, making your vacation seem further away by the day. But for businesses, it’s imperative. 

Between catching up on emails, reconnecting with clients and getting your team back into routine, it’s easy for tax and compliance obligations to slip through the cracks. 

To help you start the year on the right foot, here are the key tax-related responsibilities every business should stay on top of when returning from a holiday shutdown.

• Reconfirm Your Payroll And PAYG Withholding Settings
  

  If your business processes were paused over the break, give your payroll system a quick health check before the first pay run. 

Make sure employee details, pay rates, leave balances, and PAYG withholding settings are correct – especially if any pay rises or role changes took effect from 1 January. This is also a good time to check that STP reporting is functioning properly to avoid late lodgment issues.

• Catch Up On BAS And IAS Deadlines
  

  It’s surprisingly common for businesses to lose track of upcoming activity statement due dates when the holidays disrupt normal workflows. Review the next BAS or IAS deadline as soon as you reopen and set reminders for your team –  for many businesses, this should be 28 February 2026. If cash flow is tight after the break, plan ahead to meet your GST and PAYG instalment obligations without scrambling.

• Review Superannuation Contributions
  

  This is a good time to confirm that contributions from pre-Christmas pay runs have been paid and cleared on time. The next quarterly super guarantee (SG) contribution deadline is 28 January 2026. If you missed a deadline, address it promptly to minimise Super Guarantee Charge exposure.

• Stay Alert For ATO Correspondence
  

  ATO letters and notices may have arrived while your office was closed. Make sure someone checks the business mailbox and myGovID inbox early in the new year to avoid missed correspondence. Missing an ATO request – especially one related to overdue lodgments or verification checks – can lead to penalties or payment complications.

• Restart Good Record-Keeping Habits

  Holiday mode sometimes means receipts pile up or bookkeeping gets put on hold. 

A clean reset in January helps avoid errors later in the year. Updating your reconciliations, lodging any outstanding documents, and reviewing financial workflows will help restore order quickly. 

Returning from a break is the perfect opportunity to reset, regroup, and make sure your tax affairs are starting the year tidy, compliant, and stress-free. Taking the time now to review where things stand can help you avoid last-minute pressure and unexpected issues later on.

If you’re unsure about upcoming obligations, reporting requirements, or deadlines, having the right support can make all the difference.

Working with an accountant can help you prioritise what needs attention, stay on top of compliance, and ease the transition back into business – allowing you to focus on the year ahead with greater confidence and clarity.

As we approach a new year, many businesses are focusing on building stronger teams, improving culture and setting the foundation for sustainable growth. One area that deserves renewed attention is closing pay gaps within the workplace – not just because it’s a compliance issue, but because it’s essential for attracting and retaining talent.

The latest Workplace Gender Equality Agency (WGEA) data shows Australia is making modest progress. The national gender pay gap fell from 21.8% to 21.1% this year. In practical terms, for every dollar earned by a man, a woman earns 78.9 cents, equating to a yearly difference of $28,356. Employers are making positive shifts toward fairness, but there is still significant work to be done.

As you plan for the year ahead, here are practical strategies your business can use to minimise pay gaps and strengthen equality across your organisation.

• Understand What the Pay Gap Really Represents

The gender pay gap is not about men and women being paid differently for the same role – that is unlawful. Instead, it reflects the average difference in earnings between men and women across all roles, seniority levels and industries.

This year’s WGEA scorecard shows:

• Half of employers have a gender pay gap above 11.2%
• Only 22.5% fall within the target range of –5% to +5%
• 70% of employers have a gap favouring men

Understanding these figures helps position your business to take meaningful action rather than simply treating the issue as a compliance requirement.

• Review Pay Structures Transparently

Pay transparency laws now require employers with at least 100 staff to publish their gender pay gap. Even if your business is smaller, adopting a transparent pay framework can reduce the risk of inequities.

The WGEA recommends undertaking a thorough gender pay gap analysis, reviewing performance-based pay structures and evaluating access to overtime and bonuses. This ensures remuneration systems remain fair, consistent and accessible to all employees.

• Strengthen Pathways to Leadership

There has been an increase in the representation of women in leadership roles and on boards. However, the pay gap at the CEO level has widened to 26.2%. After bonuses and additional payments are included, male CEOs are paid an average of $185,335 more per year.

Businesses can take action by:

• Reviewing and strengthening succession pathways
• Removing bias from promotion criteria
• Offering leadership development equally
• Supporting flexible work options that make senior roles more accessible 

A more balanced leadership pipeline helps reduce structural pay disparities over time.

• Encourage Shared Caring Responsibilities

Caring responsibilities remain one of the most significant contributors to pay gaps. This year, men accounted for 20% of all parental leave, showing a gradual shift toward shared caregiving.

Businesses can support this by:

• Normalising parental leave for all genders
• Offering flexible return-to-work options
• Ensuring policies are easy to access and widely communicated

When caring responsibilities are more evenly shared, women benefit from greater participation and progression at work.

• Build a Safe, Inclusive Culture

Almost all workplaces now have policies addressing sexual harassment – an essential foundation for supporting the safety and participation of women. However, meaningful change requires more than documented policies. A respectful, inclusive culture helps reduce turnover, builds trust and supports long-term pay equity.

Superannuation is designed to fund your retirement, but in certain circumstances, you may be able to access it early to help cover significant medical expenses. 

While it’s not a decision to take lightly, early access can provide relief during challenging times – particularly when essential medical treatment creates financial pressure. 

Understanding when you can use super for medical costs, and what isn’t eligible, can help you make informed, confident decisions.

When You Can Use Super for Medical Expenses

Early access to super for medical treatment generally falls under the Compassionate Release of Super provisions administered by the ATO.

To apply, you must meet strict criteria, and the expense must relate to:

1. Medical Treatment for a Life-Threatening Illness or Injury

This includes treatments to address serious conditions such as cancer, major heart surgery, or other illnesses that place your health at significant risk.

2. Medical Treatment to Alleviate Acute or Chronic Pain

If you’re suffering from severe pain and the recommended treatment isn’t readily available through the public system – or wait times are too long – you may be eligible.

3. Medical Treatment for a Mental Illness

This can include treatment programs such as residential programs, rehabilitation services, or certain psychological therapies where a specialist has recommended the treatment.

4. Transport Costs Associated With the Treatment

Travel required to access medical care – particularly in rural or remote areas – may also be covered, provided the treatment itself meets eligibility criteria.

To qualify, the treatment must be deemed necessary and not readily available through the public health system within a reasonable timeframe. Your application must include supporting evidence, such as medical practitioner reports and treatment quotes.

What’s Not Covered

While compassionate release can provide much-needed support, coverage is far from unlimited. The ATO is strict about preventing early access for general healthcare costs or lifestyle-driven treatments. Generally, you cannot use super for:

1. Cosmetic Procedures

Treatments such as elective cosmetic surgery – including breast augmentation, rhinoplasty, liposuction or anti-ageing procedures – are not eligible unless they are clinically necessary due to trauma, congenital abnormalities or disease.

2. Everyday Medical Costs

Routine healthcare expenses such as GP visits, dental check-ups, prescription medications, glasses, physiotherapy, or standard dental work are not considered eligible.

3. Treatments Without Specialist Recommendation

You must have a specialist’s recommendation (not just a GP’s) for the treatment to qualify. Without it, the ATO won’t approve the release.

4. Overseas Treatment Not Deemed Essential

Treatment that is reasonably accessible in Australia is unlikely to qualify – even if the overseas option is faster or perceived as higher quality.

Accessing super early should always be approached with care, given its long-term impact on your retirement savings. 

But for those facing significant medical challenges – and who meet the ATO’s criteria – it can offer meaningful financial relief. 

If you’re considering applying, seeking advice from a financial adviser or tax professional can help you weigh the benefits, consequences, and your long-term financial well-being.

As the year winds down, many businesses are preparing to celebrate with end-of-year parties, staff gifts, and client events. 

While these celebrations are a great way to recognise your team’s hard work, it’s important to understand the Fringe Benefits Tax (FBT) implications that can arise. 

Getting it wrong can lead to unexpected tax bills – so here’s what you need to know before the festive season kicks off.

When Does FBT Apply to Christmas Parties?

The good news is that not all Christmas party costs are subject to FBT. The tax applies only when a benefit is considered “entertainment” and exceeds certain thresholds or does not fall under available exemptions.

A Christmas party held on the business premises on a working day is usually exempt from FBT for employees. This is because it typically qualifies as a minor benefit or falls under the property benefit exemption.

However, if your party is off-site – for example, at a restaurant or venue – FBT may apply depending in the cost per person, who attends, and whether the minor benefits exemption applies.

The Minor Benefits Exemption

One of the most commonly used exemptions for Christmas events is the minor benefits exemption. Costs under $300 per person, including GST, may be exempt from FBT if the benefit is infrequent and irregular.

This $300 threshold applies to each person individually. So, an off-site Christmas dinner costing $150 per employee and $120 per partner would generally fall under the exemption.

Note: The exemption applies separately to party costs and gifts. This means an employee could receive a party benefit under $300 and a gift under $300, and both may still be exempt.

What About Clients?

FBT does not apply to entertainment provided to clients. However, the cost is typically not tax-deductible, nor can you claim GST credits. So while inviting clients won’t cause FBT issues, you should be aware of the deduction limitations.

FBT on Gifts vs Entertainment

Gifts for employees can be tricky. Items such as gift cards, hampers, wine, or store vouchers may be considered minor benefits if under $300 per person. In that case, they are not subject to FBT, but you also can’t claim a deduction or GST credits.

Entertainment-type gifts – like theatre tickets or holiday vouchers – are more likely to attract FBT unless under the minor benefits threshold.

Best Practices for a Compliant Festive Season

• Keep detailed records of attendees and costs
• Check whether each benefit is under the $300 minor benefits limit
• Separate costs for employees, associates, and clients
• Consider holding events on business premises to reduce FBT risk
• Speak to your accountant early if planning gifts or multiple events

With a bit of planning, your business can celebrate the festive season while avoiding FBT surprises – and ensuring everyone enjoys the end-of-year cheer.

As the year draws to a close, many business owners find themselves juggling festive preparations, staff holidays, and the final rush of customer orders.

Amid the chaos, it’s easy to forget that the end of the calendar year is also an important time to get your business organised –  both financially and operationally –  before you step into the new year.

Here are a few key areas to focus on as you prepare to close out 2025 and set your business up for success in 2026.

• Review Your Financial Position

Take a moment to review your income, expenses, and cash flow. Are your invoices up to date? Have all payments been received and recorded? Reconciling your accounts now can save headaches later, and it’s a good opportunity to chase any outstanding debts before clients disappear for the holidays.

This is also a great time to assess your budget performance — did you meet your revenue and spending targets for the year? If not, identify what worked and what didn’t so you can make informed decisions moving forward.

• Get Your Paperwork And Reporting In Order

Make sure your bookkeeping is current, including payroll, superannuation, and any employee entitlements. The ATO has strict deadlines for super contributions and PAYG withholding, so double-check that everything is processed correctly.

If you’re registered for GST, ensure your activity statements are lodged and paid on time. Keeping up with your compliance now will make EOFY reporting smoother later on.

• Manage Staff Leave And Rosters

With many employees taking holidays around Christmas and New Year, it’s essential to plan rosters and workload coverage early. Confirm annual leave balances, approve requests, and make sure staff understand when the business will be closed or operating on reduced hours.

If you offer public holiday pay or overtime, review the relevant award or enterprise agreement to make sure payments are accurate and compliant.

• Take Stock — Literally

For businesses that carry inventory, now is a perfect time for a stocktake. Identify slow-moving or obsolete items and consider discounting or bundling them to clear space for the new year. Keeping your stock levels accurate helps you plan better for upcoming sales cycles and can improve your cash flow.

• Reflect And Plan Ahead

Once the essentials are covered, take a step back and reflect on the year that’s been. What achievements are you proud of? What challenges need attention? Setting aside time for strategic thinking – even an hour or two – can make a huge difference to how you approach the coming year.

Consider setting new goals, reviewing your pricing model, or updating your business plan. If you work with an accountant or adviser, now’s the time to book a review meeting to discuss tax planning opportunities, growth strategies, and performance insights.

A Fresh Start

Preparing your business for the end of the calendar year isn’t just about ticking compliance boxes – it’s about starting the new year with clarity and confidence. By wrapping up your financials, organising your team, and planning ahead, you’ll set yourself up to enter 2026 with focus, energy, and peace of mind.

As the festive season approaches, it’s natural to feel the pinch—extra gifts, extra meals, travel, and year-end celebrations all add up. 

For members and trustees of a Self-Managed Super Fund (SMSF), the message from the ATO is clear: don’t treat your super as a holiday fund. 

Why This Warning Matters.

There are very limited circumstances under which you can legally access superannuation early. Paying for bills, holiday travel, or Christmas presents simply does not qualify as a valid “condition of release”. Typically, you can access super only when you’ve reached your preservation age and retired, or have turned 65 (even if still working). 

What Are The Risks Of Dipping Into Your SMSF?

If a member takes benefits from their SMSF illegally, the consequences can be serious:

• The amounts may be taxed at the member’s marginal rate, rather than concessional super tax rates.
• The member and trustees may face administrative penalties. The ATO last year disqualified over 500 trustees for illegal access. 
• Returning funds to the SMSF after inappropriate access may be treated as a fresh contribution, which can trigger excess contribution tax if caps are exceeded. 
• There is a heightened risk of regulator action, including audits, disqualifications and further compliance activity.
  

What This Means For Members And Trustees

For trustees and members, the takeaway is simple: treat your SMSF for what it’s intended  –  long-term retirement savings, not a short-term fix to festive expenses. If pressure mounts  –  whether from bills, family obligations or travel planning  –  it’s better to explore other financial solutions than risk breaching super rules.

Trustees should ensure they:

• Regularly review and remind members of the fund’s purposes and legal obligations.
• Maintain clear records of all transactions and ensure any distributions or benefit payments satisfy the relevant conditions of release.
• Be alert to any offer or scheme that purports to allow “early access” to super; the ATO has specific warnings about these schemes and urges members and trustees to report them.
  

Before You Get Swept Up By Holiday Pressure, Here Are Some Suggestions:

• When budgeting for the festive season, treat your super as “untouchable” — plan for everything else around it.
• If you receive advice about accessing super early—especially if it seems too good to be true—pause, seek independent advice, and check with the ATO or your SMSF specialist.
• If you’ve already taken out money wrongly, act quickly: the ATO’s SMSF voluntary disclosure service can help reduce penalties if you come forward proactively.

This year, give yourself the gift of peace of mind by keeping your SMSF firmly on the “nice” side of the rules. 

Treat the festive season as an opportunity to reflect on how your SMSF supports your long-term retirement goals,  not as the moment to bend the rules. 

As your adviser, we can help you understand the risks and choices and guide you toward compliant, smarter decision-making this holiday season.

No one enjoys the idea of an Australian Taxation Office (ATO) audit, but it’s a reality that both individuals and businesses should be prepared for.

The good news is that most audits are triggered for specific reasons — and staying honest and transparent with your accountant can make all the difference if the ATO ever comes knocking.

How Often Does The ATO Conduct Audits?

While not every taxpayer will face an audit, the ATO regularly reviews data and conducts targeted compliance activities across Australia. Thousands of reviews and audits are performed each year, particularly in industries or areas where discrepancies are more common — such as cash-heavy businesses, high-value property transactions, or unusually large deductions.

With data-matching technology improving every year, the ATO now automatically cross-checks information from banks, employers, super funds, and even online platforms like Airbnb and Uber. This means inconsistencies in reported income, deductions, or business activity are far easier to spot than in the past.

Who Might Be Audited?

The ATO uses data analytics to identify potential red flags, such as:

• Income that doesn’t match third-party data (like employer-reported earnings).
  
• Unusually high deductions compared to others in your occupation or industry.
  
• Sudden or unexplained changes in business income or expenses.
  
• Failure to lodge returns or BAS statements on time.
  
• Participation in schemes or arrangements that appear to artificially reduce tax.
  

Even if your records are accurate, you can still be randomly selected for review — so it pays to keep everything above board.

Why Full Disclosure To Your Accountant Matters

Your accountant’s advice and reporting are only as accurate as the information you provide. If you withhold or misrepresent income, expenses, or assets — even unintentionally — you may face serious consequences if an audit reveals discrepancies.

Importantly, your accountant cannot be held liable for errors or penalties resulting from incomplete or false information supplied by the client. When you disclose openly, you give your accountant the best chance to prepare accurate returns and ensure compliance with tax law — and to protect you in the event of an ATO review.

The real cost of an audit

An audit isn’t just stressful — it can also be costly. Depending on the scope and duration, professional fees, time spent gathering records, and potential penalties can add up quickly. If the ATO finds that you’ve underpaid tax, you could face interest charges, penalties, and repayment obligations stretching back several years.

Some businesses choose to protect themselves with audit insurance, which covers the professional fees incurred during an ATO review or audit. It’s worth discussing whether this option suits your circumstances.

Staying on the safe side

The best way to avoid audit trouble is simple — keep thorough records, stay compliant, and communicate openly with your accountant. Double-check your information before lodging, seek professional advice before making unusual claims, and never ignore ATO correspondence.

By maintaining transparency and good record-keeping, you can face any ATO scrutiny with confidence — and stay focused on running your business, not defending your books.

The Fair Work Commission’s recent ruling against Westpac has sent ripples through workplaces across Australia — and for good reason.

In a climate where hybrid work remains a hot topic, this decision reinforces that flexibility is no longer just a “perk” but, in certain situations, a legal right that must be handled carefully and fairly.

What Happened?

The case involved Westpac employee Karlene Chandler, a long-time staff member who had successfully worked from home for years. When Westpac introduced a policy requiring staff to return to the office for part of the week, Chandler formally requested to continue working remotely full-time, citing her caring responsibilities.

Westpac rejected her request, stating that in-person collaboration and attendance at “team huddles” were necessary. Chandler took her case to the Fair Work Commission (FWC), arguing that the bank failed to properly consider her circumstances.

The Commission agreed. It ruled that Westpac did not have “reasonable business grounds” for denying her request and had failed to properly follow the consultation process outlined under the Fair Work Act 2009.

Why The Decision Matters

This ruling doesn’t mean every employee now has the automatic right to work from home. But it does mean that employers must approach flexible work requests thoughtfully, transparently and on a case-by-case basis.

The FWC highlighted a few key lessons:

1. Generic justifications aren’t enough.
   Simply saying that “collaboration works better in person” or that “company policy requires office attendance” isn’t sufficient. Employers need to show specific, evidence-based reasons why remote work wouldn’t be suitable for that particular role.
2. Process matters as much as the outcome.
   Under the Fair Work Act, employers must respond to a formal flexible work request within 21 days and genuinely try to reach an agreement. A blanket refusal or failure to consult can breach the Act — even if there are legitimate operational concerns.
3. Individual circumstances count.
   Chandler’s proven track record working remotely and her family responsibilities strengthened her case. Employers must consider the employee’s personal situation, the nature of their duties, and whether their performance can reasonably continue outside the office.

What This Means for Businesses

For employers, this case is a timely reminder to review flexible work policies and ensure managers understand their obligations. If your business receives a request to work from home (whether full-time or hybrid), take the following steps:

• Document everything. Keep a clear record of the request, the consultation process, and your response.
• Assess the role, not the person. Focus on whether the role can be effectively performed remotely — not simply whether the company prefers office attendance.
• Communicate clearly. If you do refuse, provide detailed written reasons linked to legitimate business needs (such as customer service, supervision requirements, or technology limitations).
• Stay flexible. Consider trial periods, hybrid arrangements, or performance reviews to find a balance that works for both sides.

For Employees: Know Your Rights

Employees who meet certain criteria — for example, parents or carers, people with disabilities, or those over 55 — have a legal right to request flexible working arrangements. Employers can refuse, but only on reasonable business grounds.

The Westpac case also highlights that long-term successful remote work can strengthen an employee’s case. If productivity hasn’t suffered and the role doesn’t require face-to-face duties, there’s a stronger argument that full-time remote work is viable.

The Bigger Picture

As hybrid work continues to evolve, the Westpac decision serves as a reality check for all workplaces. It underscores that flexibility isn’t about convenience — it’s about fairness, process, and evidence.

For businesses, it’s an opportunity to reflect: are your flexible work policies genuinely adaptable to individual roles and needs, or are they one-size-fits-all? For employees, it’s a reminder that while flexibility can be requested, it must be supported by sound reasoning and open communication.

Handled well, flexible working arrangements can benefit everyone — improving staff wellbeing, retention, and productivity — while ensuring businesses stay compliant and competitive in a changing world.

Australia’s superannuation system is set for one of its biggest shake-ups in decades. The government’s “Payday Super” draft proposal aims to make super payments faster, fairer, and more transparent – but it also means significant changes for how employers handle payroll and compliance.

Under the current rules, employers pay superannuation guarantee (SG) contributions quarterly. The new proposal would require these contributions to be made at the same time employees are paid — a move designed to combat billions in unpaid or late super that workers miss out on each year.

The legislation, introduced to Parliament in October 2025, is expected to commence from 1 July 2026, giving businesses time to adjust. To ease this transition, the ATO has also released a draft Practical Compliance Guideline (PCG 2025/D5) outlining its approach to compliance in the early stages — confirming that the focus will not be on honest mistakes, but on persistent or deliberate non-compliance.

What You Need to Know

1. Super payments must match pay cycles
   Employers will need to pay SG contributions at the same time as salary and wages, or within seven calendar days of payday. This change brings super into line with employees’ pay frequency — whether weekly, fortnightly, or monthly.
2. Faster processing requirements for funds
   Super funds will have just three business days (down from the current 20) to allocate contributions to members’ accounts. This will mean quicker visibility for employees and faster compounding of retirement savings.
3. New “qualifying earnings” basis
   A new concept called Qualifying Earnings (QE) will determine SG calculations. This aims to simplify the current system and ensure consistency across different types of payments.
4. Updated reporting obligations
   Employers will report both qualifying earnings and SG contributions through Single Touch Payroll (STP), enhancing transparency and reducing lag times in data reporting.
5. Revised penalties and tax deductions
   While penalties for late or missing contributions will increase, the SG charge itself will become tax-deductible — though penalties and interest will not.
6. ATO’s small business clearing house to close
   The Small Business Superannuation Clearing House (SBSCH) will cease new registrations from July 2026, with existing users transitioned to other payment platforms.

Why It Matters

For employees, the change is expected to be a win. More frequent contributions mean their super starts compounding sooner, potentially adding thousands to their retirement balance over time. For employers, however, the adjustment may require system upgrades, cash flow planning, and closer payroll integration.

Small businesses, in particular, are concerned about the potential administrative burden of aligning payroll and super cycles. The government has signalled it will work closely with software providers and the ATO to support this shift.

The ATO’s draft guidance also offers reassurance that employers who genuinely try to comply will not be targeted during the transition.

Payday Super is designed to modernise Australia’s super system, making it more transparent and equitable. While it introduces additional responsibilities for employers, it’s also an opportunity to strengthen employee trust and streamline payroll practices.

Now is the time for businesses to review their payroll processes, consult with their accountant or bookkeeper, and ensure they’re ready for the July 2026 start date. Early preparation could make all the difference when the new rules take effect.

Why not find out how we could help by kickstarting that conversation with us today?