Payday Superannuation Is Coming: What Employers Need to Know
The Australian Taxation Office (ATO) has released a draft Practical Compliance Guideline (PCG) that could significantly affect how tax deductions are claimed for holiday homes that are also rented out.
The draft guideline, known as PCG 2025/D7, explains how the ATO intends to apply section 26-50 of the Income Tax Assessment Act 1997 to holiday and recreational properties that have both private and rental use.
Although this guideline is still in draft form, it provides a clear signal of the ATO’s compliance approach moving forward.
What Is Changing?
Under the Payday Super requirements, employers must pay employees’ Superannuation Guarantee (SG) contributions every time they process payroll. Whether employees are paid weekly, fortnightly, or monthly, their super must be paid at the same time. This change is designed to help workers receive super sooner, reduce unpaid entitlements, and ensure contributions have more time to grow.
The Current Super Rules
At present, employers pay superannuation quarterly and must submit contributions by the 28th day following the end of each quarter. The current deadlines are:
Q 1: 1 July – 30 September Due: 28 October
Q 2: 1 October – 31 December Due: 28 January
Q3: 1 January – 31 March Due: 28 April
Q4; April – 30 June Due: 28 July
These quarterly requirements will no longer apply from 1 July 2026.
Why the Change?
The move to Payday Super aims to strengthen Australia’s retirement system by helping employees receive their super as they earn it, reducing unpaid or delayed superannuation, improving transparency for workers who can more easily monitor contributions, and increasing the impact of compounding to support stronger long-term retirement savings.
Closure of the ATO Small Business Superannuation Clearing House
Alongside the change in timing, the ATO has announced that the Small Business Superannuation Clearing House will close from 1 July 2026. Businesses currently using this service to lodge their super payments will need to transition to a new clearing house before the deadline. Alternative clearing options may include payroll software integrations, clearing services offered by super funds, or commercial providers. Planning ahead will help avoid disruption when the service ends.
What Employers Need to Do
To prepare for Payday Super, employers should begin reviewing their payroll processes now. Key considerations include:
Ensuring payroll systems can process super alongside wages
Reviewing cash-flow practices to accommodate more frequent payments
Selecting a new clearing house if currently using the ATO Small Business Superannuation Clearing House.
Updating internal processes and record-keeping ahead of the July 2026 start date.
Although these requirements will require adjustment, paying super regularly may reduce compliance risk and provide employees with greater confidence that contributions are being made correctly and on time.
How We Can Help
If you would like to discuss how Payday Super may affect your business or need support transitioning to a new clearing solution, our team is here to help. Reach out to us to plan ahead and ensure your business is ready before the 1 July 2026 deadline.
This information is general in nature and should not be relied upon as specific advice for your circumstances. Please contact us to discuss your individual situation.