What this ruling covers
The Australian Taxation Office (ATO) has published Law Companion Ruling LCR 2026/1 to explain how the new Payday Super rules interact with the old quarterly superannuation guarantee (SG) system during the switchover period. The ruling is administratively binding on the Commissioner of Taxation and applies from 1 July 2026.
The Payday Super change
Payday Super started on 1 July 2026. Under this system, employers are required to pay super aligned to each pay run rather than quarterly.
Old quarterly rules still apply to pre-July 2026 shortfalls
The ruling confirms that any SG shortfalls or SG charge liabilities for quarters ending before 1 July 2026 are still calculated and paid under the old rules. For example, if SG contributions were missed for the April to June 2026 quarter, the obligation is to lodge an SG statement and pay the SG charge under the old system. The deadline for that quarter is 28 August 2026.
Specific transition issues covered by the ruling
LCR 2026/1 addresses a number of specific transition matters, including:
- How excess contributions made before 1 July 2026 are treated under the new system
- How contributions made between 1 July 2026 and 28 July 2026 are applied - paragraphs 25 to 40 of the ruling set out the transitional rules for this period
- The cessation of the late payment offset under old section 23A
- Reversals of pre-July 2026 salary sacrifice contributions
- Rules for Norfolk Island wages
Late payment offset no longer available
The late payment offset under old section 23A has ceased. This option is no longer available from 1 July 2026 as a way to reduce SG charge liabilities.
Key actions stated in the ruling
- If SG contributions were missed for the April to June 2026 quarter, the obligation is to lodge an SG statement and pay the SG charge by 28 August 2026 under the old quarterly rules. The new Payday Super system does not replace this obligation.
- Where excess SG contributions were made before 1 July 2026, the ruling sets out transitional rules for how these are treated under the new system. Review LCR 2026/1 or speak with a qualified professional.
- If SG contributions were made between 1 July 2026 and 28 July 2026, paragraphs 25 to 40 of LCR 2026/1 set out how those contributions are applied under the transitional rules.
- The companion ruling LCR 2026/3 (Payday Super: calculation and assessment of the superannuation guarantee charge) provides an overview of how the new Payday Super system calculates and assesses the SG charge going forward.
Where to find the ruling
The full text of LCR 2026/1 is available on the ATO website at https://www.ato.gov.au/law/view/document?docid=COG/LCR20261/NAT/ATO/00001.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.