Payroll News, June 2026: STP EOFY Finalisation, 4.75% Fair Work Annual Wage Review and Payday Super
- Brett Reed
- Jun 5
- 9 min read
Updated: 4 hours ago
Payroll News for June 2026
The 2026 financial year is about to end, and you need to be ready for processing your STP final event. Also, from 1 July 2026, you must also be ready for Payday Super. From 1 July 2026, employers must pay the Employer Superannuation Contributions to an employee’s Superannuation Fund at the same time as paying Qualifying Earnings (QE), on pay day, and the payment must be allocated by the fund within 7 business days. In specific situations, it can be up to twenty business days. We have published a complete Payday Super Employer Guide to help explain the details.
Also in this edition of Payroll News, we've included several informative Payday Super videos from Jason Low and the Association for Payroll Specialists (TAPS) team.
If you need help understanding Payday Super compliance, superannuation obligations, or payroll reporting requirements, the following organisations also offer educational resources, training and professional support:
What do we still not know about Payday Super?
The preparation for Payday Super compliance requirements posed many challenges for Digital Service Providers (DSPs), including implications for reporting and payroll software.
The Australian Taxation Office (ATO) acknowledges that DSPs have updated their STP products to enable QE reporting, which has been developed based on their published materials and on queries we have raised directly with them, noting that some of those queries remain outstanding.
There are numerous items we are still waiting for the ATO guidance on, and that are currently in progress.
Salary sacrifice treatment for bottom-up, top-down and total cost of employment (inclusive of Super Guarantee) salary packages. Current guidance reflects the simplicity of the legislation, without regard to different salary packaging types or to the refund of salary sacrifice amounts. It isn’t implementable by payroll DSPs until the ATO publish revised guidance.
Under-18-year-olds who are paid on pay cycles other than a weekly frequency, as the legislation only refers to “week” without any nuance to inform how that may be applied for other pay frequencies.
Qualifying Earnings (QE) require extensive guidance on how standard payroll payments are treated, such as when additional payments are Qualifying Earnings but are paid during absences that are not Qualifying Earnings. Current guidance is “stand-alone” and simple. Allowance treatment for super guarantee purposes is particularly lacking in adequate guidance.
Out-of-cycle payments are still in draft legislative instrument to obtain feedback and do not yet provide the extensive detail required in payroll to determine which payments may be deferred to the next regular pay for payday super purposes.
The corrections framework remains undefined, leaving employers unsure of whether and how they must correct qualifying earnings and/or superannuation liability for typical transactions, such as overpayments, changes in absence status from QE to non-QE, misclassifications, etc.
Contributions in error are still in the design process to determine how employers may get a refund of their super contributions when they have been paid in error.
Voluntary Disclosure Statement (VDS), which may reduce the administrative uplift component of the Super Guarantee Charge (SGC), is still in the design phase.
What is the Payday Practical Compliance Guideline?
The Practical Compliance Guideline PCG 2026/1 (Payday Super - first-year ATO compliance approach) addresses concerns that employers may not have had sufficient time to make changes to payroll systems and business processes ahead of 1 July 2026. Provided employers pay super on a payday basis and correct errors as soon as possible, including any amounts reported through STP, they will not be the focus of the ATO's compliance action.
What now for e-PayDay Go®?
We now have many significant new features that will make payroll processing less stressful and more rewarding. We have only a few items left from our e-PayDay® Legacy desktop payroll to port to achieve feature parity with e-PayDay Go® cloud payroll. With that being said, having completely rebuilt the product from the ground up, we now have a framework that allows us to fulfil our vision, and many features have already been added that are not found in our desktop product.
The introduction of Payday Super delayed our development roadmap by 9 months, pushing back many features we had hoped to implement earlier. However, we are now back on track and will deliver many exciting payroll enhancements in 2027. We will continually improve the Payday Super workflow and implement iterative changes as the ATO completes the guidance.
EOFY Survival Guide
Finally, our ever-popular EOFY Survival Guide is available, offering some peace of mind as the end of the financial year approaches. Our EOFY processes have been particularly smooth since transitioning to e-PayDay Go®, but this year includes the added challenge of Payday Super.
We always strive to ensure that your pay days are enjoyable!
Brett
You can find me on LinkedIn.
Use our complete Payday Super Employer Guide to help you get started now.
We have been diligently refining and expanding the functionality of e-PayDay Go® to align with Payday Super requirements. In addition, we have successfully integrated several superannuation features from the original release of e-PayDay Go®, enhancing the capabilities and delivering significant benefits tailored specifically for Payday Super. These improvements aim to streamline processes and improve your overall experience.
Avoid Superannuation Guarantee Charges (SGC)
We can now confirm that the ATO has stated that SG Liability (ESG and AWD), Voluntary Super (VOL), and Salary Sacrifice (SS) MUST be paid on pay day to avoid a Superannuation Guarantee Charge (SGC). As a result, these three Employer Contribution Types cannot be divided among multiple Superannuation Funds under the Superannuation Guarantee (Administration) Act 1992, Part 3A. This requirement has been implemented in e-PayDay Go®.
However, the ATO has clarified that Employee Contributions can be directed to super funds other than the Choice of Fund. Consequently, the option to split Personal Contributions (After PAYGW) into multiple Super Funds remains on our agenda for an upcoming release.
You can start reporting and paying Payday Super now. The earlier you get started, the sooner you minimise the risk of being subject to a Superannuation Guarantee Charge (SGC) for missed, incorrect or late payments.
We're excited to offer payroll tools to help you meet the Payday Super requirements. Just remember, ensuring your payroll software is set up correctly is key to meeting your employer obligations.
Payday Super Explained: TAPS Video Series for Payroll Professionals
I'm excited to share that Jason Low and his amazing team at The Association for Payroll Specialists (TAPS) have introduced "Payday Super: Your FREE Head Start," an insightful four-part video series exploring key aspects of payday super!
Part 1 - What does payday mean for super?
Understanding the new meaning of pay day under Payday Super, including the critical deadlines that cannot be missed and the cash flow impacts that require careful planning.
Part 2
Your new Payday Super reporting obligations, what to know about Super Liability and Qualifying Earnings, and the pay code updates needed to stay compliant.
Part 3 - Can I get a deferral?
Is your business ready for Payday Super? The answer may be no, but Jason can help narrow your options and prepare your payroll processes for compliance.
Part 4 - Super Caps
In this video, Jason breaks down what payroll professionals need to know about Super Caps under Payday Super, including the Maximum Contributions Base and the Concessional Contributions Cap.
Who is TAPS?
The Association for Payroll Specialists (TAPS) was established in 1990 and is Australia's original association representing the payroll industry.
They are a voice of the payroll community, representing over 10,000 payroll professionals and businesses across every sector of the economy, from small and medium-sized enterprises (SMEs) to major corporations and government departments.
Payroll officers pay the 9.8 million working Australians over $426 billion in wages every year, and their duties now encompass Accounting, Human Resources, Industrial Relations, Payroll Legislation, and Information Technology (IT).
TAPS provides a number of specialised benefits to acknowledge and assist payroll professionals and keep them up to date with Australia's unique payroll environment.
Fair Work Commission Wage Increase 2026: Automated Modern Award Updates with e-PayDay Go®
The Fair Work Commission (FWC) announced an increase to the National Minimum Wage and minimum award wages, which apply from the first full pay period starting on or after 1 July 2026.
Our powerful Update Awards Automation Tool continually monitors the Modern Awards and immediately notifies employers of changes. This versatile built-in functionality also streamlines the complex process of adjusting wages in response to FWC wage changes.
Employers can also decide whether to adjust their above-award rates to reflect the increase or absorb it.
With e-PayDay Go®, Australian Taxation Office (ATO) Changes Happen Automatically
As part of the 2025-26 Federal Budget, the government announced that, from 1 July 2026, it would deliver new tax cuts to every Australian taxpayer. The reduction in tax cuts aims to provide more cost-of-living relief and to address bracket creep.
There are two stages to the tax cuts:
From 1 July 2026, the 16 per cent rate will be reduced to 15 per cent.
From 1 July 2027, the 15 per cent rate will be reduced further to 14 per cent.
Senior and Pensioner Tax Offset (SAPTO) thresholds will change from 2026-27 as a result of the tax cuts. There will be no changes to the maximum tax offset amounts.
These changes are automatically applied in e-PayDay Go® Payroll Software, so there is nothing for you to do.
Junior Pay Rate Changes for Retail, Fast Food and Pharmacy Employees Aged 18 to 20
The Fair Work Commission announced forthcoming changes to junior wages under the:
Currently, employees under 21 years old covered by these awards receive a percentage of the adult pay rate for their classification.
With these changes, employees aged 18 to 20 will qualify for the adult pay rate for their classification if they have been employed by their employer for over 6 months.
The shift to a 100% adult pay rate will be phased in gradually and could begin as early as 1 December 2026.
ATO Reviewing Long-Haul Truck Driver Travel Expense Deductions After Federal Court Decision
![Legal case involving long-haul truck driver travel and overtime meal expense deductions under Commissioner of Taxation v Shaw [2026] FCA 197.](https://static.wixstatic.com/media/3884db_77f9636e43b2411196549033ab747f96~mv2.png/v1/fill/w_960,h_540,al_c,q_90,enc_avif,quality_auto/3884db_77f9636e43b2411196549033ab747f96~mv2.png)
The ATO will reassess its guidance on the substantiation exception for travel and overtime meal allowance expenses following the Federal Court decision.
This Decision Impact Statement details the ATO's response to the ruling in Commissioner of Taxation v Shaw [2026] FCA 197, which concluded that the taxpayer, an employee long-haul truck driver, was eligible for a deduction for work-related travel expenses claimed for meals.
Related Rulings/Determinations:
Why We Rebuilt e-PayDay Go® Cloud Payroll Software from the Ground Up
Developed completely from scratch, e-PayDay Go® cloud payroll software was designed to provide a modern, scalable payroll solution that supports ongoing innovation, compliance updates, and future payroll requirements.
While we could have incorporated elements from our legacy desktop payroll software, we realised that doing so would limit our ability to create a solution that truly reflects our decades of experience in payroll software development.
We are not yet where we want to be, but we are on our way and very excited about what is coming next.
Easily Invite Your Accountant or Bookkeeper (Tax Practitioner) to Assist e-PayDay Go®
Now you can easily invite your Accountant, Bookkeeper or Registered Tax Practitioner to assist with payroll processing, Payday Super compliance and ongoing payroll administration.
By simply selecting the Invite Tax Practitioner button and completing a few details, an invitation email is automatically sent to your preferred Tax Practitioner, all completed directly within e-PayDay Go®.
This seamless integration allows your Tax Practitioner to actively engage and respond quickly to your payroll needs, without the wait.
Everything required is within e-PayDay Go®, which is designed to make payroll management as efficient and straightforward as possible.
With this feature, you can rest assured that you have the right professional support to navigate the complexities of payroll regulations, tax compliance and superannuation obligations.
If you are an Accountant or Bookkeeper, see how easy it is to get started and freely manage your clients with fewer than 4 employees.
Need Payroll Help? Try the ATO Community and Fair Work Resources
Looking for help with payroll, tax or superannuation questions? The ATO Community and Fair Work provide valuable resources and guidance for employers and payroll professionals.
Through community-driven discussions, you can also discover answers to tax and superannuation questions from a knowledge base built from previous inquiries and responses.
Remember, the Australian Taxation Office (ATO) can only answer taxation and superannuation-related payroll queries.
Some payroll-related questions can only be answered by the skilled team at Fair Work.
Fair Work's Employer Advisory Service (EAS) provides small business employers with free tailored written advice about pay and conditions to help ensure you are meeting your obligations under the Fair Work Act.
Comments