Coco Hou CPA, CEO of Platinum Accounting Australia, is urging businesses to prepare for upcoming changes to the Australian Taxation Office (ATO) superannuation regulations. From 1 July 2026, employers will be required to pay employees’ superannuation at the same time as their salary and wages.
The ATO’s move to real-time super payments aims to streamline the system, ensuring employees receive their entitlements promptly. The start date has been set to allow enough time for employers, super funds, payroll providers, and other stakeholders to adjust. However, Hou warns businesses not to delay their preparations.
“I am of the strong opinion that if many businesses do not start preparing now for the changes, they will face solvency issues once the new requirements kick in. Businesses will face a cashflow coma if they do not ready themselves now,” Hou said.
To ensure a smooth transition, Hou has outlined key areas of focus for businesses.
Review Payroll Systems
“While many businesses use systems such as Xero and MYOB, there are many other aspects to changes to payroll management,” Hou explained. “Businesses need to ensure current systems can handle simultaneous superannuation and wage payments, and that other processes and administrative functions are updated as well.”
Stronger Integrity Measures
“The requirement for superannuation payments to be made at the same time as employee pays are processed introduces higher levels of risk to the business,” Hou said. “This will also give rise to the need for stronger integrity checks and fail-safe mechanisms.”
Cashflow Management
“Businesses will need to adjust their financial planning to accommodate real-time superannuation contributions. The impact for many businesses will be quite significant,” Hou said. “I am strongly urging businesses to review their debtor management to improve collection of payments.”
Seek Help and Staff Training
“Significant changes of this nature impose serious challenges for businesses. I urge businesses to seek advice from accountants or financial advisors to ensure compliance,” Hou said. “Once systems have been updated and new procedures and processes put in place, it will be essential for businesses to educate HR and payroll teams on the changes to avoid errors or delays.”
With penalties for non-compliance a possibility, Hou stresses that early preparation will prevent stress and financial strain as the deadline approaches.
