Payday Super legislation

The Government introduced the Payday Super legislation to Parliament on 9 October which is expected to take effect on 30 June 2026.

Much has been written about the worthy goal of reducing the $5.7 billion unpaid super problem balanced with the costs to business (especially small business) in terms of additional working capital requirements to make payments sooner.

Much less has been said about the practical problem of getting each payment into a superfund on payday, as I identified in a previous post.

A glimmer appears in the ATO’s Draft Practical Compliance Guide (DPCG) released the same day which proposes for the FY27, that the ATO will not allocate compliance resources where the employer has made contributions on payday but some have been rejected and subsequently makes the payment as soon as possible after becoming aware of the shortfall. I don’t know why only this single example is included or why these errors would stop at FY27. Their approach to FY28 is unknown. The employer bears the onus, regardless of whether the error occurred because of the employer’s mistake or an error of the employee, superfund or clearing house/intermediary.

A copy of the DPCG is available here.