ATO signals facilitative year for pay day super

Mike Taylor

Managing Editor/Publisher, Financial Newswire

12 November 2025

The Australian Taxation Office (ATO) has signalled it will be adopting a facilitative approach for employers attempting to the right thing over the first 12 months of the pay day superannuation regime.

Amid calls from the major accounting groups for a two-year phase-in of the regime for small to medium enterprises, the ATO issued a statement which noted the 1 July, 2026, start date but offered only that the tax office would recognise employers attempting to do the right thing.

“The ATO’s proposed compliance approach for the first year of Payday Super will recognise that employers who try to do the right thing, and resolve any issues quickly, will not be the focus of ATO compliance action,” the ATO statement said

ATO deputy commissioner, Emma Rosenzwieg’s statement described the pay day superannuation regime as “a once in a generation change” adding that the ATO wants employers to give themselves the best opportunity be prepared from 1 July,2026.

“Simply put Payday Super is about paying super on payday. Don’t wait until the last minute, we want employers to start planning for Payday Super now to ensure they are prepared for when the law takes effect,” she said

“You don’t have to wait to start paying super contributions more regularly. Many employers are already paying on pay day.’

Payday Super will help employers meet their super guarantee (SG) obligations and help protect the retirement funds of millions of Australians.

“This is critical change in addressing unpaid super and deterring non-payment by employers while ensuring employees are fully compensated for any delays in receiving their super.”

“Payday Super will provide the ATO with earlier visibility of under-payment or non-payment of super, allowing for a proactive approach to compliance to reduce unpaid super,” Rosenzweig said.