On 22 October 2026, the Australian Taxation Office (ATO) published draft Practical Compliance Guideline PS LA 2026/D4 outlining the Commissioner’s approach to initiating assessments under the new Payday Super regime. This guidance forms part of the broader Superannuation Guarantee (SG) reform package requiring employers to pay superannuation contributions at the same time as salary and wages, effective from 1 July 2026. The draft guideline details the circumstances under which the Commissioner may raise assessments for unpaid or underpaid superannuation guarantee charges (SGC), including the interaction with Single Touch Payroll (STP) reporting data and the evidentiary thresholds required. Stakeholders are invited to provide feedback by 13 November 2026 before the guidance is finalised. This development signals the ATO’s readiness to enforce the Payday Super obligations using its statutory assessment powers, moving beyond reliance on voluntary compliance and SGC self-assessment by employers.
Key Takeaways
- Expanded Assessment Powers: The draft guideline clarifies that the Commissioner can issue assessments for SGC liabilities based on STP data discrepancies, third-party information, or audit findings, without waiting for an employer’s SGC statement.
- Consultation Deadline: Practitioners and employer groups must submit comments by 13 November 2026 to influence the final guidance, particularly regarding the ‘reasonable grounds’ threshold for initiating assessments and procedural fairness safeguards.
- Payday Super Enforcement Readiness: The release confirms the ATO’s operational capacity to enforce the 1 July 2026 Payday Super start date, urging employers to align payroll systems and remittance processes immediately to avoid retrospective assessments and penalties.
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