On 9 October 2025 the Government introduced the Payday Super legislation into Parliament. The new system is proposed to take effect from 1 July 2026 and will basically ensure that employer superannuation guarantee (SG) contributions are paid at the same time as salary and wages  and need to be received by the employee’s fund within seven business days. Otherwise, employers face updated superannuation guarantee charges (SGC).

The ATO is also reminding taxpayers that they will retire the Small Business Superannuation Clearing House (SBSCH) platform from 1 July 2026 for all users and alternative options should be sought to ensure compliance with the new Payday Super laws.

The ATO has issued a draft Practical Compliance Guideline PCG 2025/D5 which outlines a risk-based compliance approach for the first year of Payday Super (1 July 2026 to 30 June 2027). Further details on the legislation and draft PCG can be found below.

• Treasury Laws Amendment (Payday Superannuation) Bill 2025 – Parliament of Australia
• Superannuation Guarantee Charge Amendment Bill 2025 – Parliament of Australia
• Payday superannuation
• Payday Super legislation introduced and draft PCG
• PCG 2025/D5 | Legal database
• The Small Business Superannuation Clearing House is closing | Australian Taxation Office 

Boosting the Low Income Superannuation Tax Offset (LISTO)

The Government has announced proposed changes to the low-income superannuation tax offset (LISTO) from 1 July 2027.

The maximum LISTO payment will increase by $310 to $810, and the eligibility threshold will rise from $37,000 to $45,000.

Draft legislation is expected to be introduced in 2026 for consultation. 

• Low Income Superannuation Tax Offset | Treasury.gov.au
• Reforms to support low-income workers and build a stronger super system | Treasury.gov.au 

ATO’s compliance approach to Payday Super 

The ATO has issued PCG 2025/D5 which outlines when the ATO is likely to apply compliance resources in the first year of Payday Super (FY 2027), and the risk framework that will be adopted.  

Employers are categorised into three risk zones:

• Low risk - attempted on-time payments and corrected errors promptly, resulting in nil final shortfalls for the qualified earnings day;
• Medium risk - nil final shortfalls by 28 days post the end of the quarter but not fully Payday Super compliant; and
• High risk - persistent shortfalls beyond 28 days post quarter.

The ATO will prioritise compliance resources on high risk employers. Medium risk cases may be investigated, but with lower priority.

Employers may shift risk zones during the year, with compliance reviews applied only to medium or high risk qualified earnings days.

The draft document suggests that the ATO will be lenient to some extent when it comes to employers who make a genuine effort to comply with the new rules, at least until 30 June 2027.

•  PCG 2025/D5