Following much anticipation in relation to the Payday Super regime, on 9 October 2025, two Bills were introduced into Parliament – the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and Superannuation Guarantee Charge Amendment Bill 2025.
The Payday Superannuation Bill mandates that, starting 1 July 2026, employers will pay superannuation alongside salary and wages. While it’s still open for feedback and not yet law, this is a major step toward securing workers’ retirement savings. Final details and further guidance will follow once the Bill is finalised.
On the same day the Australian Taxation Office (ATO) released a Draft Practical Compliance Guideline PCG 2025/D5 Payday Super – first year ATO compliance approach.
Key Changes to the Draft Legislation
ATO Draft Practical Compliance Guideline PCG 2025/D5 Payday Super – first year ATO compliance approach.
The framework outlined only applies for the period from 1 July 2026 to 30 June 2027. After that, stricter penalties are likely. It introduces a risk-based framework to set the scene for where the ATO will focus attention, with high risk being the priority but medium risk also being likely to trigger review. Employers wanting to stay on the ATO’s nice list (or be considered “low risk” and avoid having compliance resources applied to them) will need to make on-time contributions, fix errors quickly, and avoid SG shortfalls.
Going Forward
Employers must now give careful consideration to the following:
- Payroll timing
- Superannuation Guarantee (SG) processes
- Governance oversight
Failure to make timely super contributions may result in:
- Compound interest being charged at the General Interest Charge (GIC) rate
- An administration charge of up to 60% of the shortfall and interest, unless the issue is disclosed within 30 days.
Table 1: Superannuation Contribution Risk Categories and Examples. Source: ATO Draft Practical Compliance Guideline PCG 2025/D5
Article By Taylah Obst Taylah Obst is an Accountant at 360Private, currently completing her CA studies and recently presented with a second Certificate of Merit from Chartered Accountants Australia and New Zealand for being in the top 5% of candidates in Australia