Payday Super first year ATO compliance activities locked in

The ATO messaging regarding its compliance approach is that the Guideline “recognises that employers who try to do the right thing from 1 July 2026 to 30 June 2027 and resolve any issues quickly, should not be the focus of ATO compliance action”.

Key updates to the Guideline

The following is a summary of the key updates made to the Guideline:

1. There are two additional examples which relate to employers moving between risk zones (being examples 8 and 9). Example 8 in the Guideline relates to movement from a low-risk zone to a high-risk zone, and example 9 relates to movement from a medium-risk zone to a low-risk zone. Essentially, the two examples provide that employers can have multiple risk zones throughout the 2026/27 financial year, moving between risk zones as the circumstances arise, rather than one risk zone arising for the full year.

2. The ATO also clarifies what it means by ‘as soon as reasonably practicable’ in relation to employers resolving issues quickly and being eligible to fall into a lower risk zone. The ATO states in paragraph 17 of the Guideline that “This means that the rectification should happen as soon as the employer becomes aware of the issue and is able to correct it”.

Key suggested updates not made to the Guideline

Many key recommendations put forward in the consultation process were not covered in the final Guideline for the first year ATO compliance activities.

Recommendations that were not covered include adopting an education approach rather than a punishment approach; providing carve-outs for small businesses; and extending the guidance from one year to two years minimum due to concerns regarding systems readiness.

Further, no updates have been made to consider a tiered enforcement model proportionate to employer size and risk profile. The ATO states in the compendium to the Guideline that it remains focused on employer behaviour, regardless of the size of the employer.

Other recommendations that were not covered in the guidance related to practical relief, addressing a wide range of suggested detailed examples, including examples relating to specific processing delays out of the employer’s control and the various situations where employers are dealing with incorrect employee super fund details.

Recent checklists issued by the ATO

The ATO has been releasing additional information regarding guidance for the new Payday Super regime.

Two checklists were published by the ATO on their website on 29 January 2026 as follows:

1. Payday Super checklist for employers:
   
   The checklist advises:

• What to do now: Start to understand the new requirements.

• February to March 2026: Plan transition, seek tax professional advice, review cash flow and review payroll governance and business processes.

• April to June 2026: Contact payroll / clearing house providers to check if ready and action required, and test and confirm payroll governance processes.

• July 2026: Commence compliance with the new Payday Super regime, including the 7 business day compliance period; report qualifying earnings and super liability in Single Touch Payroll; and make final quarterly payment for June 2026 quarter by the due date of 28 July 2026 (noting this relates to existing requirements that will be superseded by the new Payday Super regime starting 1 July 2026).
  

2. How to transition from the Small Business Superannuation Clearing House (SBSCH):
   
   The checklist provides a suggested timeline and tips for those employers currently using the ATO’s clearing house, to help transition away from the SBSCH, which is due to close on 1 July 2026.
   
   Please note well that there is no access to the SBSCH from midnight on 30 June 2026. This means that 30 June 2026 is the last time employers can download reports or make any superannuation contributions to the SBSCH.
   

Further guidance material to be issued by the ATO

The ATO has promised that further guidance will be available in readiness for the commencement of the Payday Super regime in time for the 1 July 2026 start date.

The compendium to the Guideline PCG 2026/1EC stated that the ATO will monitor Payday Super implementation systems' readiness and will update guidance where appropriate. 

The ATO also published on its website on 2 February 2026 that it will issue Draft Law Companion Rulings “to provide clarity and certainty to employers, digital services providers, superannuation funds and other stakeholders”. 

These draft rulings are expected to be released in March 2026 on the following topics:

• qualifying earnings

• eligible contributions

• the new superannuation guarantee charge, and

• transitional provisions.

Final comments

Whilst it is disappointing that most of the industry feedback from the consultation submissions was not applied in the finalised Guideline, it is pleasing that the ATO has promised that further guidance will be available in readiness for the commencement of the Payday Super regime.

Some further guidance has already been released by the ATO and further guidance has been announced to be released in March 2026.