The Australian Taxation Office (ATO) is calling on employers across all industries, including the hospitality sector, to begin preparations now for the introduction of Payday Super, which takes effect from 1 July 2026.
The newly passed legislation will fundamentally change how businesses handle superannuation payments, moving from the current quarterly system to requiring super contributions to be paid at the same time as salary and wages.
ATO Deputy Commissioner Emma Rosenzweig described the change as “once in a generation” and emphasised the importance of early preparation.
“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,” Rosenzweig said.
The change is expected to have significant implications for the restaurant industry, where many businesses operate on tight cash flows and manage large numbers of casual and part-time employees with varying pay cycles.
However, Rosenzweig noted that many employers have already voluntarily moved to more frequent super payments. “You don’t have to wait to start paying super contributions more regularly. Many employers are already paying on payday,” she said.
Earlier visibility of underpayments
The ATO says Payday Super will help employers meet their super guarantee obligations while protecting the retirement funds of millions of Australians. The new system will provide earlier visibility of underpayment or non-payment, allowing the tax office to take a more proactive compliance approach.
For the hospitality sector, which has previously faced scrutiny over wage and super compliance issues, the ATO has indicated a pragmatic approach for the first year of implementation.
“Our 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,” Rosenzweig said.
The ATO is working with industry groups, tax professionals, digital service providers and super funds to support the transition. The tax office will provide clear guidance on factors it will consider in its compliance approach ahead of the July 2026 start date.
Restaurant operators can keep up to date with Payday Super developments at ato.gov.au/paydaysuper.
