July 2026

A new financial year, and this one starts with more moving parts than most. Payday Super has officially begun, individual tax rates have shifted, and the ATO is taking a firmer line on unpaid debt.

Payday Super has started

From 1 July 2026, employers must pay super guarantee at the same time as wages rather than quarterly.

• Contributions generally need to reach an employee's super fund within 7 business days of payday

• Super is now calculated on "qualifying earnings," a new term combining ordinary time earnings and other payments

• The final quarterly payment (for the April–June quarter) is still due by 28 July under the old rules

• Missed or late payments are now picked up through Single Touch Payroll far faster than before, so errors are less likely to slip through unnoticed

  
  

New super contribution caps for 2026–27

• Concessional (before-tax) cap: increased to $32,500

• Non-concessional (after-tax) cap: increased to $130,000

• Worth reviewing if you're making extra contributions this year, particularly around timing under the new Payday Super rules

  
  

Tax debt collection is intensifying

The ATO has moved from reminder letters to active recovery action.

• Director Penalty Notices and garnishee notices are being issued more frequently

• A Director Penalty Notice can make directors personally liable for unpaid PAYG withholding, GST and super

• If you're carrying ATO debt, engaging early to set up a payment arrangement is far better than waiting for enforcement action — remember, interest on ATO debt is also no longer tax deductible

  
  

Individual tax changes now in effect

• The lowest marginal tax rate has dropped from 16% to 15%

• Employers need to check payroll software is using the updated withholding tables to avoid under- or over-withholding

• The proposed $1,000 standard deduction for work-related expenses (claimable without receipts) is expected to apply from this financial year — more detail to come as legislation progresses

  
  

What to focus on now

• Confirm your payroll system correctly applies Payday Super and the new withholding tables

• If you used the SBSCH, make sure you've transitioned to a new super payment method

• Address any outstanding ATO debt before it escalates to formal recovery action

• Review contribution strategies against the new, higher caps

  
  

If you want help navigating these changes or understanding how they apply to your situation, Apex Tax Advisory can assist.