Year 1 ATO Compliance Update (From 1 July 2026)

From 1 July 2026, the new Payday Super rules will require employers to pay super at the same time as wages, rather than quarterly.

The ATO has shared guidance on how they will handle compliance in the first year (2026–27). There is some flexibility, but also clear expectations.

What’s Changing?

  • Super must be paid each pay cycle (weekly, fortnightly, monthly)
  • Contributions should reach the employee’s fund within 7 business days of payday [ato.gov.au]
  • Late or missing payments may create a Super Guarantee (SG) shortfall.

ATO Approach in Year 1 (Transition Period)

The ATO knows this is a big change and will use a practical, risk-based approach in the first year.

They will pay less attention to honest mistakes and focus more on employers who:

  • Don’t attempt to comply.
  • Fail to fix errors
  • Leave super unpaid

Low Risk (No ATO Action)

You will generally be considered low risk if:

  • You are genuinely trying to pay super on time.
  • Any errors (e.g. rejected payments) are:
    • identified quickly
    • fixed as soon as possible
  • All employees ultimately receive their correct super.
  • There are no remaining shortfalls.

In these situations, the ATO has said they will not make compliance action a priority [ato.gov.au]

Medium Risk (Possible Review)

You may fall into this category if:

  • You continue paying superannuation quarterly during the transition.
  • Or you are slow to align with payday payments.
  • But still ensure everything is paid by:
    • 28 days after the end of the quarter

The ATO might review these cases, but they are a lower priority [ato.gov.au]

High Risk (ATO Enforcement Focus)

You are at higher risk if:

  • Super is underpaid or not paid at all.
  • Errors are not corrected.
  • Contributions remain unpaid after:
    • 28 days post quarter

The ATO will actively target these cases [ato.gov.au]

Key Message from the ATO

Even in Year 1:

  • The law still applies in full.
  • The ATO must act where unpaid super is identified.
  • The only difference is how strongly they follow up on cases

What You Should Do Now

To stay compliant and low risk:

✔ Align super payments with your payroll cycle
✔ Ensure funds receive contributions within the required timeframe
✔ Check payments to make sure they are received, not just sent
✔ Fix any problems right away, such as rejected or delayed payments
✔ Keep records that show how you are trying to comply

Simple Rule

“Pay on time, fix issues quickly, and make sure nothing is left unpaid.”

Need Help?

We are currently helping clients:

  • Review payroll systems for Payday Super.
  • Implement payment and monitoring processes.
  • Set up error handling and compliance controls.

If you want help getting ready for Payday Super, get in touch with our team.