On 18 March 2026 the ATO released four draft Law Companion Rulings (LCR 2026/D1 to LCR 2026/D4) for payday super, the regime that starts on 1 July 2026. With roughly 100 days to go, this is the most detailed guidance employers have seen on how the new system is intended to work. If you employ staff, it is worth understanding what the rulings cover and what they mean for your payroll between now and the end of June.
What the four draft rulings cover
The draft rulings deal with four pieces of the new framework:
- The new “qualifying earnings” concept, which is the base the payday super obligation is calculated on
- What counts as an eligible contribution
- The redesigned super guarantee charge calculation, which replaces the current approach
- Transitional rules for the changeover
These are drafts, so the detail may shift before they are finalised. Even so, they are the clearest signal yet of how the ATO will administer the regime and are worth a structured review with your bookkeeper or tax agent rather than a skim.
A quick refresher on what changes
From 1 July 2026, super is payable every payday rather than quarterly. Contributions must reach the employee’s fund within 7 business days of payday. The quarterly system ends on 30 June 2026; the ATO’s Small Business Superannuation Clearing House closes on the same date. If you currently rely on the clearing house, you will need a replacement arrangement in place before the new financial year.
The ATO has a plain English overview on its payday super page.
The first year compliance approach is already settled
The draft rulings sit alongside guidance the ATO has already finalised: PCG 2026/1, which sets out a risk zone model for the first year only, covering 1 July 2026 to 30 June 2027. Under that approach, employers who make genuine on-time efforts to pay super each payday and fix errors promptly are treated as low risk and are not a compliance focus.
That is a sensible settling-in posture, but note what it rewards. It protects employers who are trying and correcting, not employers who have not started. The low risk zone is something you earn through preparation.
The regulators are worried about readiness
On 25 March 2026 APRA and the ATO wrote jointly to superannuation fund licensees, flagging concern that employers and funds may not have their payroll and system changes tested in time for 1 July. That concern is well founded on the employer side too. Research by Employment Hero found that 58% of small businesses had never heard of the reform.
If you are reading this, you are already ahead of more than half the market. The job now is to convert awareness into a tested payroll process.
What to do before 30 June
Four practical steps, in order:
- Ask your bookkeeper or tax agent to review the draft rulings against your payroll setup, particularly how qualifying earnings will apply to your pay items
- Run a trial pay run in your payroll software to test how it handles per-payday super
- Confirm your clearing house arrangements, remembering the Small Business Superannuation Clearing House closes 30 June 2026
- Clean up employee fund details now, because a 7 business day deadline leaves little room for bounced contributions
None of these steps is large on its own. Together they are the difference between a routine July and a scramble.
Before you act
This article is general information only and is not tax, legal or financial advice. The rulings discussed are drafts and may change. Confirm how payday super applies to your business with a registered tax agent or check the official ATO guidance before acting.