Submission – Payday Super – ATO Draft Practical Compliance Guideline

The Super Members Council (SMC) supports the ATO’s risk-based, phased compliance approach for the first year of Payday Super. The draft framework’s categorisation of employers into low, medium, and high risk is a practical way to allocate compliance resources and encourage behavioural change while focusing resources on the areas of greatest risk. We value the clarity provided on the proposed transition approach, which will give comfort to employers who genuinely try to do the right thing if they encounter circumstances beyond their control. This proportionate strategy supports businesses in adapting to new processes while maintaining a strong focus on ensuring employees are paid the super entitlements they are owed.

SMC recommends that the ATO

• explicitly factor in previous instances of non-compliance when determining risk ratings
• publish clear, transparent consequences for each category, including examples of interventions, penalties, and support measures
• give clear guidance and support for employers, particularly small businesses, during the transition period
• resource the scale-up of data-driven surveillance ahead of the start date for Payday Super