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It is critical that employers and intermediaries have confidence that the ATO’s processes and systems will be ready for payday super on 1 July 2026, the IPA has said.
IPA urges IGTO to prioritise review into payday super readiness
30 May 2025
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8 minute read
The Institute of Public Accountants (IPA) has urged the Tax Ombudsman to prioritise a review into payday super readiness for this year, with the start date fast approaching.
Last month, the Inspector-General of Taxation and Tax Ombudsman (IGTO) Ruth Owen released a shortlist of proposed reviews for the next financial year for consultation.
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In its submission, the IPA said it considered all 10 areas of review included in the shortlist to be "important and worthy of the IGTO's attention".
Payday super readiness is one of the review topics that should be given priority with the new regime commencing 1 July 2026, the accounting body said.
"Given the timing of the legislation, a review in 2025 would be ideal," the submission said.
The IPA explained that payday super will require every employer to change their payroll and administrative processes.
"Employers will be subject to penalties and interest if contributions are not received and allocated by their employees’ superannuation funds within a short timeframe," it said.
"Therefore it is imperative that employers, employees and intermediaries can have confidence that the ATO’s processes and systems are both appropriate and ready for administering Payday Super with accuracy and fairness," the body said.
In addition, the ATO’s Small Business Superannuation Clearing House will be abolished.
The IPA said it was important that employers and small business who currently use the clearing house, in particular, will be adequately supported and educated before the change and during the initial transition period.
Review into TPB's management of breaches
The IPA also believes a review into how the TPB manages referrals of breaches under the updated Code of Conduct is needed.
While the eight new obligations in the code already apply to firms with more than 100 staff, smaller practices will need to comply with the new rules from 1 July this year.
"Some aspects of the new rules are causing a lot of confusion as there are concepts which are left to the agent’s professional judgment and without bright-line guidance in either the Legislative Instrument or the TPB guidance material," the professional body said.
"A review of how the TPB has managed the referrals of breaches for larger practices for which the new obligations have applied since 1 January 2025 would provide reassurance where it is found that there is a fair and reasonable approach taken to particular issues, and assist the TPB to refine and update its processes in areas where there is room for improvement."
The IPA said this would also provide practitioners with transparency as to the TPB’s compliance approach during this early transitional period, particularly in relation to ‘grey areas’.
Some of the other review areas that the IPA considers to be priority include the ATO's Client-Agent Linking System, the ATO's remission of the general interest charge and the ATO's Online Services for Agents (OSfA).
The IPA said a review into the OSfA system was critical for ensuring the system functioned efficiently for practitioners, which would also reduce reliance on the phone and in-person interactions.
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