Open forum 19 March

Session overview

This session provides an update on issues currently affecting employers and tax practitioners, including Payday Super, recent ATO app enhancements, fringe benefits tax (FBT) obligations, and other priority compliance matters.

Webinar recording

Watch the recording at a time that suits you and claim continuing professional education.

 

Key insights from tax practitioner questions

Missed the forum? Here’s what was asked:

• Digital identity and identity strength
• Payday Super
• Interest and penalty remissions

Digital identity and identity strength

Increasing identity strength without a passport in Western Australia

You can obtain a Standard identity strength without needing to verify your photo.

To set up a Standard myID, you can verify any 2 of the following other Australian documents:

• drivers licence or learners permit
• birth certificate
• visa (using your foreign passport)
• Immicard
• citizenship certificate
• Medicare card (this option appears after you verify one of the above documents).

You can find support:

• to help you verify your IDExternal Link
• if you’re unable to achieve a Standard myIDExternal Link.

While the feature to verify your drivers licence photo is built into the myID app, expansion to more regions depends on participation by each Australian state and territory in the National Driver Licence Facial Recognition SolutionExternal Link.

Clients lodging a BAS without a passport

Individuals and sole traders

Individual and sole trader clients can use most myGov sign in options to access ATO online services. If they’ve used a myID to sign in they would have set their online access strength – helping to secure their account – this means they should continue to use their myID with the same or higher identity strength to sign in. If they need to change their online access strength, they should contact the ATO on the individual’s enquiry line.

If your client’s identity has been compromised in the past, they may have additional security measures in place which lock their access to ATO online services. To unlock their access, they can set up and use a myID with a Strong identity strength to sign in. If they’re unable to set up a Strong myID or don’t want to, they can call us for temporary access.

Note: tax practitioners are still able to view, update and progress any activities on behalf of a compromised client through practice software or Online services for agents as per normal. 

Business

To access Online services for business, their myID needs to be linked to the Australian business number (ABN) in Relationship Authorisation Manager (RAM).

The principal authority (the person responsible for the business) has to be the first person to link their myID to the business. They need to:

• set up their myID with at least a Standard identity strength
• link their myID to the ABN in RAM – if they can only set up a Standard myID, they’ll need to complete additional proof of identity checks to link.

If they’re not the principal authority for the business, they need to:

• set up their myID with at least a Standard identity strength
• be authorised by the business’s principal authority or authorisation administrator in Relationship Authorisation Manager.

For more information see Link to a business in RAMExternal Link.

Setting up Standard myID identity strength for temporary residents without an Australian drivers licence

For a Standard identity strength, they need to verify any 2 of the following Australian documents:

• passport (an Australian passport, either current or no more than 3 years expired)
• drivers licence or learners permit
• birth certificate
• visa (using your foreign passport)
• Immicard
• citizenship certificate
• Medicare card (this option appears after you verify one of the above documents).

You can find support to help you verify your IDExternal Link.

If they’re unable to set up a Standard myID, they may be able to access Online services for agents using a myID with a Basic identity strength. For more information, see Accessing our online services with a Basic Digital ID.

Cancelling a fraudulent myGov account

Contact the Services Australia Scams and Identity Theft HelpdeskExternal Link on 1800 941 126.

They are available Monday to Friday 8:00 am to 5:00 pm AEST (AEDT during daylight saving months).

Downloading the ATO app on an Android device

The ATO app can be downloaded from Google PlayExternal Link for Android devices.

Payday Super

Timing of super for contractor qualifying earnings

If a contractor is deemed an employee for super guarantee (SG) purposes, they must have their SG paid at the same time as their income – this means the date the invoice is paid.

Closure of the Small Business Super Clearing House

The closure timing for the Small Business Super Clearing House (SBSCH) was a government decision. The SBSCH is not fit-for-purpose for Payday Super requirements. Improvements in payroll software solutions over recent years provide employers with cost-effective and higher-quality options for paying superannuation contributions more timely and accurately.

You can download all your historical records from the SBSCH to assist in preparing returns any time before it closes on 11:59 pm AEST 30 June 2026. Details on how to do this are available from Small Business Superannuation Clearing House.

BAS agent sign-off Payday Super

BAS Agent access to super details via Online Services for Agents is within scope of Payday Super. The ATO is currently considering the timing for these updates.

Clearing houses processing times under Payday Super

Clearing houses publish their processing timeframes on their websites and in their product disclosure documents. These timeframes vary, so employers should review them in light of Payday Super requirements. Regulations supporting the Payday Super legislation set out obligations for super funds, including expectations for processing times and the requirement to accept payments using the new payments platform.

The safest way for employers to meet the 7-business-day requirement is to pay the contribution on the same day as payday, allowing maximum time for processing.

Concessional caps transition arrangements

The Government has advised it will introduce technical amendments to ensure individuals do not exceed their concessional contributions cap in 2026–27 from their SG contributions as a result of the transition from the quarterly superannuation guarantee system to the new Payday Super system.

Super payments for June 2026 quarter

Super Guarantee payments for the April to June quarter must be received by the employee's super fund on or before 28 July 2026. It's important that employers leave enough time for your SG payments to reach the super fund and allow for their processing timeframes. If employers miss this due date, they need to lodge a Super Guarantee Charge (SGC) statement and pay the amount of SGC owing to us by 28 August 2026. The Late Payment Offset won’t be available for any late super payments for the June quarter due 28 July 2026.

Responsibility for delayed super payments

Employers must take into account the processing timeframes of intermediaries they use, such as clearing houses, to ensure contributions reach the super fund within 7 business days. Most clearing houses publish their processing timeframes publicly, and employers may also need to contact their super fund or payroll provider to confirm timings.

Other changes coming under Payday Super, including SuperStream improvements will help you meet your obligations. The key message is that paying super on the same day as payday provides the greatest opportunity to meet the required timeframes.

The ATO has also published guidance outlining how compliance resources will be allocated during the first year of Payday Super. Employers who try to do the right thing and resolve issues promptly will not be the focus of compliance action.

Accessing Small Business Super Clearing House (SBSCH) data for audit purposes post 1 July 2026

You can download all your historical records from the SBSCH any time before it closes on 11:59 pm AEST 30 June 2026. These will need to be stored by the employer to meet their record keeping obligations.

Guidance on late super payments where an employee changes their super account

PS LA 2007/1 (GA) Assessing superannuation guarantee charge where the employers have done what they could reasonably be expected to do to comply with the law by the due date applies to periods pre-1 July 2026 and will not continue under Payday Super. Our public advice and guidance will be updated to reflect this in due course.

Pre-paying super

Yes, under the law, eligible contributions made within 12 months before the Qualifying Earnings, where that amount is in excess of the earlier QE days, will carry forward to future qualifying earnings (QE) days and may be used for the purposes of calculating whether an employer has met the minimum super guarantee obligations.

Clearing Houses preparing for Payday Super

While there are no specific regulations for clearing houses as part of the Payday Super changes, clearing houses have actively participated in the consultation process. Employers should review the processing timeframes published by their clearing house, including information on their website and in product disclosure documents. Because timeframes vary, employers may also need to contact their clearing house, super fund or payroll provider to understand how long payments take to be processed and ensure they can meet Payday Super requirements.

Single Touch Payroll (STP) and Payday Super

Software providers are working on how they will implement the required changes in their products and services, including changes for STP. Your software provider should contact you when these changes are ready and any actions you need to take (for example, mapping pay codes).

Changes to SGC process and deductibility from 1 July 2026

From 1 July 2026, you will no longer be able to submit an SGC statement form. From 1 July 2026, if you are late or have missed making a super payment, you can lodge a voluntary disclosure statement. Information on how to lodge a voluntary disclosure statement will be available on our website prior to 1 July 2026. Even if you lodge a voluntary disclosure statement, you should still pay any late contributions to the fund (unless the ATO has made an SGC assessment).

From 1 July 2026, the design of the SGC will change. Nominal interest will no longer be a component of the core SGC. Notional earnings will be a core component of the new SGC and is essentially interest to compensate employees for lost fund earnings when their contributions have not been received in full and on time. From 1 July 2026, the core SGC will be deductible. However, additional interest and penalties (general interest charge and late payment penalties) are not deductible.

Closely held employees and quarterly reporting requirements through STP

Amounts paid to closely held employees can continue to be reported through STP on a quarterly basis. However, choosing quarterly reporting does not change the timing requirements for super guarantee contributions under Payday Super. Payments to closely held payees must still meet the required timeframes, with contributions reaching the super fund within seven business days (unless an exception applies).

Sole operator accounting software options for Payday Super

All super payments must be sent using SuperStream, which is the standard way employers send super and employee information to super funds. To meet SuperStream requirements, you can use the following electronic options:

• payroll system
• super fund online system
• super clearing house
• EFT or BPAY direct to the fund
• messaging portal.

You can also ask your accountant or bookkeeper to help you with one of these options.

Paying voluntary super contributions deducted from an employee's salary

Payday Super provides the timeframes in relation to Super Guarantee contributions only. The due dates for voluntary contributions will be dictated by enterprise agreements or awards with your employees.

STP reporting issues or mistakes

For examples of issues and mistakes we've seen with STP reports and how to address them, see STP Reporting issues and errors.

Interest and penalty remissions

Lodging remission requests for General interest charge and failure to lodge

You need to complete a separate form for each taxpayer and penalty or interest type (for example, a separate form for general interest charge (GIC) and failure to lodge penalty). You don’t need to submit separate forms for different accounts though. For example, you should submit one GIC remission application form for both income tax and activity statement.

Processing new interest and penalty remission requests

The service standard for remission requests is 28 days.

There may be delays in our response time while we are implementing these interim changes. Lodging a complaint won’t speed up the process. We’re working to minimise delays and appreciate your patience.

To help with this make sure you download the correct form and follow the instructions at How to request a remission of interest and failure to lodge penalties.