What has been released
The Australian Taxation Office (ATO) has published a compendium document, LCR 2026/1EC, summarising submissions received during public consultation on its draft ruling about Payday Super transition rules (draft LCR 2026/D4). The consultation period ran from 18 March 2026 to 1 May 2026.
The compendium is a transparency document only. The final ruling is administratively binding on the Commissioner, but it does not sit within the formal tax ruling framework. Businesses cannot rely on it for protection from superannuation guarantee (SG) charge, penalties, or interest.
Key clarifications confirmed in the compendium
No exemptions from Payday Super
No exemptions from Payday Super will be granted for any employer or period.
Which SG rules apply to new employees around 1 July 2026
For employees whose first payday falls before 1 July 2026, the old quarterly SG rules apply. For employees whose first payday falls on or after 1 July 2026, the new Payday Super allowable longer period rules apply - even if employment started before that date.
Concessional contributions cap protection
The government announced on 24 February 2026 that it intends to legislate to prevent employees from accidentally breaching their concessional contributions cap in the 2026-27 income year due to the transition from quarterly to Payday Super SG.
First-year compliance approach
The ATO's first-year compliance approach for Payday Super is set out separately in PCG 2026/1.
Key actions
- Check PCG 2026/1 (Payday Super - first year ATO compliance approach) for the ATO's compliance stance during the first year of Payday Super, available at ato.gov.au.
- For employees starting work close to 1 July 2026, confirm whether their first payday falls before or after that date - this determines which SG rules (old quarterly or new Payday Super) apply to their first contribution.
- For high-income employees with multiple employers who have an SG shortfall exemption certificate, check the ATO's guidance at ato.gov.au under 'Super guarantee opt out for high-income earners with multiple employers' for transition details.
- Read the final Law Companion Ruling LCR 2026/1 and the related Payday Super rulings (including LCR 2026/3) for the full technical guidance on transitional provisions, available at ato.gov.au/law.
Source document
The compendium LCR 2026/1EC is available at the ATO website: ato.gov.au - LCR 2026/1EC.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.