Book a consultation

Category: Compliance

  • Payday Super is live: what employers need to know

    Payday Super started on 1 July 2026. Employers no longer pay superannuation guarantee (SG) quarterly — contributions now have to be paid with every pay run. The rules come from the Treasury Laws Amendment (Payday Superannuation) Act 2025, which received Royal Assent in November 2025.

    The new deadline

    • The fund must receive the contribution within 7 business days after payday — paying on day 7 is not enough if it lands on day 8.
    • For a new employee, or an employee who has just changed funds, the first contribution has 20 business days.
    • Out-of-cycle payments (for example a bonus paid between pay runs) are due with the contribution for the next regular payday.
    • Business days exclude weekends and state-wide public holidays.

    Qualifying earnings replace OTE as the base

    SG is now calculated on qualifying earnings (QE), which is broader than ordinary time earnings. QE includes all OTE, all commissions (even for work outside ordinary hours), and salary sacrificed to super that would otherwise have been OTE. Check that your pay items are mapped correctly — this is where most payroll systems need attention.

    Late payments cost more

    • The ATO now raises the Super Guarantee Charge (SGC) itself — employers no longer lodge SG statements.
    • The SGC includes the shortfall, daily-compounding interest at the general interest charge rate, and an administrative uplift that can be reduced for early voluntary disclosure.
    • The SGC is now tax deductible, but interest and late-payment penalties are not.

    The ATO clearing house has closed

    The Small Business Superannuation Clearing House closed permanently on 1 July 2026, and no replacement has been set up. Employers need to pay through payroll software with built-in super payments, a commercial clearing house, a fund-run clearing service or a SuperStream portal.

    STP reporting changes

    Each Single Touch Payroll pay event should now report year-to-date QE and super liability. The ATO will accept super liability plus OTE until 30 June 2027; from 1 July 2027, reports missing QE or super liability will be rejected.

    The first year

    The ATO’s practical compliance guideline for the first year (PCG 2026/1) focuses compliance activity on employers who are not making a genuine effort to pay correctly and on time. It is a statement of priorities, not an amnesty — the SGC can still apply to late payments.

    A quick readiness checklist

    • Pay items mapped to QE, including commissions and salary sacrifice
    • A payment method that gets money to funds within 7 business days — allow for clearing times
    • A process for new starters and fund changes (20 business days)
    • STP reporting of QE and super liability
    • Fund details validated before the first pay run

    Need help? Core365 SuperLink automates QE calculations, fund validation and SuperStream dispatch with a 7-day countdown dashboard. Book a free strategy call or email info@core365.com.au.

    Sources

  • Supplying government? What Peppol e-invoicing means for you

    E-invoicing through the Peppol network is becoming the default way to invoice the Australian Government. There is a lot of confusion about who has to do what, so here is a plain summary.

    What the Commonwealth has committed to

    • Non-corporate Commonwealth entities (most departments and agencies) were asked to lift e-invoicing to 30% of all invoices received by 1 July 2026, working with their suppliers.
    • By December 2026 they must be able to automatically process received e-invoices and send e-invoices.
    • The stated goal is to make e-invoicing the default for government procurement.

    Is it compulsory for suppliers?

    Not by law. The targets apply to agencies, not suppliers. In practice, agencies are being encouraged to build e-invoicing into contracts, so an individual contract may require it — and suppliers who can e-invoice are easier to deal with. NSW agencies have been required to accept e-invoices since 2022, but NSW also does not mandate it for suppliers.

    Faster payment is the real benefit

    • Under the Commonwealth’s Supplier Pay On-Time or Pay Interest Policy, e-invoices are paid within 5 calendar days (where both parties can e-invoice), compared with 20 days for other invoices.
    • NSW pays registered suppliers within 5 business days for e-invoices up to $1 million.

    How to get on Peppol

    • The ATO is Australia’s Peppol Authority. You connect through an ATO-accredited access point provider — many accounting and ERP systems partner with one.
    • Your Peppol ID is based on your ABN.
    • Invoices must use the PINT A-NZ standard, which replaced the older A-NZ BIS format in November 2024.
    • An e-invoice with all the mandatory data is a valid tax invoice for GST purposes.

    What about business-to-business?

    There is currently no B2B e-invoicing mandate in Australia. Adoption between businesses is voluntary — but the same network, IDs and standards apply, so once you are connected you can e-invoice any Peppol-enabled customer.

    Need help? Core365 InvoiceLink sends and receives PINT A-NZ e-invoices directly from Business Central, with ABN validation and a full audit trail. Book a free strategy call or email info@core365.com.au.

    Sources

  • AML/CTF Tranche 2: new obligations for accountants, lawyers and real estate

    Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) reforms — known as Tranche 2 — brought new sectors under AUSTRAC regulation from 1 July 2026. Existing reporting entities also saw changes to customer due diligence from 31 March 2026.

    Who is now covered

    Obligations attach to the services a business provides, not just its profession. The newly regulated groups include:

    • Lawyers, accountants and conveyancers — for example helping clients buy or sell real estate or businesses, managing client money for a transaction, setting up or restructuring companies and trusts, or acting as a nominee director or trustee
    • Trust and company service providers, including providing a registered office address or selling shelf companies
    • Real estate professionals — brokering sales and purchases, and developers selling directly
    • Dealers in precious metals, stones and products — transactions of $10,000 or more paid in cash or virtual assets

    Core obligations

    • Enrol with AUSTRAC within 28 days of first providing a designated service
    • Maintain an AML/CTF program: a risk assessment and policies proportionate to your size and risk
    • Appoint an AML/CTF compliance officer and train staff
    • Customer due diligence: identify and verify customers and beneficial owners, and check for politically exposed persons and sanctions
    • Report suspicious matters, cash transactions of $10,000 or more, and relevant cross-border movements
    • Keep records for 7 years, and arrange periodic independent evaluations

    AUSTRAC’s approach in the first year

    AUSTRAC has said it does not expect newly regulated businesses to be perfect, but it does expect honest efforts. Its early enforcement priorities are businesses that have not enrolled, or that are reckless about or complicit in criminal activity. Starter kits and sector guides are available on the AUSTRAC website. Penalties for serious non-compliance are substantial, so it is worth getting the basics in place now.

    Where systems help

    Much of the day-to-day work — recording CDD, rating customer risk, screening against sanctions lists and keeping an audit trail — can be built into the systems you already use rather than managed in spreadsheets.

    Need help? Core365 ShieldLink brings KYC, risk rating, sanctions and PEP screening and reporting into the Business Central customer card. Book a free strategy call or email info@core365.com.au.

    Sources