In this important episode of Wealth Coffee Chats, Daniel McPherson from Positive Tax breaks down the newly passed payday super legislation- a major change set to impact every business owner across Australia. With the law officially taking effect on 1 July 2026, Daniel explains why the transition window is shorter than it seems and why businesses that aren’t prepared risk severe penalties. He outlines how the long-standing quarterly super cycle will be replaced with a strict requirement for super contributions to be received by the fund within seven days of each payday, giving employers far less cash-flow flexibility. Daniel also dives into the new penalty structure, real-time ATO visibility through payroll systems, and why the commonly discussed “leniency period” is not actually written into law. He highlights the significant operational changes required-automation, tighter payroll accuracy, award compliance, and more frequent cash-flow planning. Finally, Daniel shares an action plan so business owners can prepare early, avoid unnecessary penalties, and protect their employees’ retirement savings. This is a must-listen for anyone running payroll in Australia.

Episode Highlights:

1. What payday super is and why it’s a major national change.
2. Key dates: legislation passed, royal assent, and the 1 July 2026 start.
3. How the shift from quarterly to payday super removes the cash-flow buffer.
4. New requirement: super must be received by funds within seven days.
5. ATO real-time visibility and how mismatched data will trigger audits.
6. The truth about the “leniency period” and why it’s not legally guaranteed.
7. Big changes to the penalty regime, including the 60% uplift.
8. Why automation (Xero, MYOB, KeyPay, etc.) becomes mandatory.
9. The need to fix award setups, underpayments, and payroll errors before July 2026.
10. A business owner action plan to prepare early and avoid penalties.