From www.smsfadviser.com: The Australian Taxation Office estimates that approximately $5.2 billion in superannuation guarantee contributions for FY2021-22 were not paid on time, prompting the government to propose the introduction of the Payday Super regime, which mandates employers to pay SG contributions at the same time as salaries starting from July 1, 2026.

Currently, SG contributions must be made quarterly, but under the proposed changes, contributions would need to be received by superannuation funds within seven days of salary payments, raising concerns about the capability of existing systems to meet this tighter timeline.

If passed into law, non-compliance with PDS could lead to significantly increased penalties for employers, creating a compliance risk that necessitates careful planning and adjustments in payroll systems.