The ATO issued the final Practice Statement Law Administration PS LA 2026/2 on 7 October 2026, providing guidance on the Commissioner’s discretion to determine exceptional circumstances under the new Payday Super regime. The legislation, effective from 1 July 2026, requires employers to pay superannuation guarantee contributions at the same time as salary and wages. PS LA 2026/2 outlines the factors the Commissioner will consider when an employer seeks relief from the strict payment timeline due to events such as natural disasters, system failures, or other extraordinary situations.
Key Takeaways
- Scope of Exceptional Circumstances: The determination covers events beyond the employer’s control that make timely payment impracticable. Examples include severe weather, cyber‑attacks on payroll systems, and ATO system outages.
- Application Process: Employers must apply through the ATO’s online services, providing evidence of the event and its impact on payment capability. The ATO aims to process determinations within five business days.
- Compliance Expectations: Even where a determination is granted, employers are expected to remit contributions as soon as practicable. The ATO will monitor patterns to prevent misuse of the relief provision.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement