Get prepared for ‘once in a generation’ Payday Super changes: ATO

“This is a once in a generation change to our system to really tackle the unpaid super problem. And we want employers to give themselves the best opportunity to be prepared,” she said.

Under the legislation, passed in November 2025, employers will be required to pay employees’ super at the same time as their salary and wages, instead of every quarter. Firms would face penalties if contributions did not arrive in employees’ super funds within seven days of payday.

The ATO said Payday Super would make it easier for employees to track super they were being paid and enable regulators to act more quickly against employers that failed to meet their employees’ super obligations.

The Tax Office estimated there was a net super guarantee gap of 6 per cent, or $6.25 billion, in 2022–23. In the 2025 financial year, approximately $1.1 billion in unpaid super was returned to nearly 1 million super funds following ATO enforcement actions.

“[Payday Super] will give the ATO more visibility over underpayment or non-payment of superannuation so that we can more proactively tackle those problems when they arrive, with a view to getting employers back on track more easily and hopefully staying on track,” Rosenzweig said.

The ATO expected businesses to be ready for the new rules by the July deadline, but Rosenzweig acknowledged there could be compliance snags along the way.

“We expect that from 1st July, 2026, employers will start paying their super contributions on payday.”

“But we do know that all the payroll software that businesses rely on is being updated as we speak. And so some employers might need a bit more time to make sure they get their reporting [systems] right, they might need a bit more time to test and deploy once those software changes have been made.”

Rosenzweig also acknowledged concerns that contributions could be made late due to delays on the super fund end, risking penalties for businesses that had paid on time on their end. She said that the ATO would not be focusing on genuine errors during the first year of enforcement but added that now was a good time to test systems ahead of the July deadline.

“This is a really great time to fix [errors] up and work out what's driving those errors … and make sure they've got it right before the payday super cycle starts and they're having to make much more regular payments,” she said.

“Employers [should] use this preparation time to make sure they've got all the right information and data that they need.”

She added that the ATO’s approach for the first year of Payday Super had been outlined in the tax office’s practical compliance guide, PCG 2026/1.

“It really reflects that employers who are trying to do the right thing, and resolve any issues quickly, won't be the focus of our compliance action in that first year,” Rosenzweig said of the PCG.

“[Employers who are] paying more regularly and fixing problems when they arise; they won't be the focus of any compliance action from us in that first year. We'll really be focusing on those employers who just aren't paying or who've missed payments and haven't caught up.”

In another key update for small businesses, Rosenzweig flagged that the ATO’s Small Business Super Clearing House service would close on 1 July 2026. The government had opted to shut down the clearing house because it was no longer fit for purpose under Payday Super, she said.

“The government's chosen to close it. And one of the reasons is that this is a service that was introduced some time ago. It isn't fit for purpose for Payday Super. It's not capable of handling the volume and the pace,” she explained.

Rosenzweig encouraged small businesses to start thinking about alternative arrangements, such as leveraging super functionalities in their existing payroll software, before the clearing house closes in July.