iscover ATO finalises ruling on transitional rules for Payday Super
SuperThe Tax Office has published its finalised ruling on the transitional rules supporting the transition from quarterly SG payments to Payday Super as part of a suite of law companion rulings.
The ATO has published three finalised Law Companion Rulings (LCRs) on the Payday Super regime, following the release of four draft rulings earlier this year in March.
The suite of rulings provides the ATO's views on key aspects of the revised legislative regime in the Superannuation Guarantee (Administration) Act 1992 (SGAA).
Law Companion Ruling LCR 2026/1, previously released in draft form as LCR 2026/D4, provides guidance on the application of provisions from both the Payday Super amendments and the old legislation.
"The ruling also provides guidance on the provisions that support the transition from the quarterly SG system to Payday Super," the ATO said.
"These transitional rules are intended to address timing mismatches, legacy arrangements and overlapping actions or obligations that may arise during the transition period."
LCR 2026/1 explains how the transitional rules operate; how excess contributions made before 1 July 2026 are applied under the new act; the cessation of the late payment offset; how contributions made between 1 July 2026 and 28 July 2026 will be applied; and the reversal, on or after 1 July 2026, of pre-commencement sacrificed contributions.
The Tax Office has also published LCR 2026/2, which explains which superannuation contributions an employer must make to avoid the SG charge.
The ruling explains the criteria that contributions must satisfy to be eligible, as well as the time periods within which the contributions must be received.
The ATO also reminded employers in the ruling about the order in which on-time and late contributions will be applied under the new Payday Super regime.
Contributions are applied in a specific order, with contributions first applied to the earliest QE day for which there is an individual base or final SG shortfall, assuming no assessment of SG charge has been made for that QE day.
"They are applied in the calculation of the individual base or final SG shortfall for that QE day in the order in which they are received by the employee's fund," the ATO said.
"Then, contributions are applied to the next QE day in the same manner, and so on."
The ATO has also published LCR 2026/3, which provides an overview of how the SG charge is calculated and assessed following the amendments.
Employers who missed final quarterly payment advised to take action now
The ATO has also warned employers who missed the final quarterly super payment on 28 July to act immediately to meet their obligations.
"You need to be aware that paying super even a little bit late might result in a quarterly super debt. If your employee’s super fund didn’t receive contributions in full for the June quarter by 28 July, don’t pay directly to the fund. Instead, to remain compliant, you must lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO by 28 August for the final quarterly payment," said the Tax Office.
"Remember, any payments received on or after 29 July will be automatically allocated to Payday Super amounts, even if you intended them to be made for super you owe for the June quarter."
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