Global Employer Services Update - September 2026

Global Employer Services update - Transcript

Employees under the age of 18 may start to receive super

The Federal Government has introduced legislation proposing to remove the current superannuation exemption that applies to many workers under 18 years of age. Under the existing rules, employees under 18 who work 30 hours or less per week are generally not entitled to Superannuation Guarantee contributions.

If passed, the changes would extend superannuation entitlements to hundreds of thousands of younger workers who are currently excluded from the system. The proposal is intended to improve long-term retirement savings by allowing workers to begin accumulating superannuation earlier in their working lives. While the legislation is not yet law, employers should monitor its progress and consider any future payroll system changes that may be required. 

Super processing schedule has been updated  

The ATO has published updated remittance and recovery processing schedules for August and September 2026.

While primarily operational in nature, the schedules provide employers, funds and payroll teams with greater visibility over ATO processing timeframes for superannuation transactions. 

Director liability remains a personal risk 

 The Federal Court decision in Ostwald v Commissioner of Taxation reinforces the significant personal risks directors face where superannuation obligations are not met.

The case involved directors seeking to rely on the “all reasonable steps” defence after director penalty notices were issued for unpaid Superannuation Guarantee Charge liabilities. The Court confirmed that directors must demonstrate they took direct steps towards ensuring the company complied with its superannuation obligations. General measures such as restructuring discussions, refinancing activities or attempts to improve the company’s financial position were not sufficient.

The decision highlights the importance of ensuring superannuation contributions are paid on time and that directors maintain active oversight of payroll tax and superannuation compliance obligations.

 Contractor structures under pressure 

A further significant payroll tax decision was handed down by the New South Wales Supreme Court in Cerisewin Pty Ltd v Chief Commissioner of State Revenue.

The Court found that payments made by a commercial cleaning group to corporate contractors were subject to payroll tax under the employment agency provisions. Importantly, the Court held that the taxable amount included the full payments made to contractors, rather than only the labour component.

The decision continues a broader trend of payroll tax authorities successfully applying employment agency and contractor provisions to outsourced labour arrangements. Businesses that engage contractors through related entities or labour supply structures should continue reviewing whether these arrangements create payroll tax exposure. 

Annual totals shape overtime interpretation 

The Federal Court decision in Qube Ports Pty Ltd v Construction, Forestry and Maritime Employees Union considered the operation of overtime provisions under an enterprise agreement where an employee had worked in multiple employment categories during a year.

The Court confirmed that overtime calculations should be determined by reference to total annual hours worked, while ensuring that hours already counted towards one entitlement are not counted again. The decision provides useful guidance on how complex enterprise agreement provisions should be interpreted where employees move between different classifications or employment categories.

Employers should review enterprise agreement provisions for clarity and ensure payroll practices align with the intended operation of overtime clauses.

Victoria’s Labour Hire Authority has commenced significant legal action against a labour hire provider and several horticultural businesses for alleged breaches of labour hire licensing laws.

The proceedings involve allegations that unlicensed labour hire arrangements were used within the horticultural sector, with reported concerns relating to worker exploitation, underpayments and broader compliance failures. Potential penalties exceed several million dollars.

The matter demonstrates the increasing enforcement focus on labour hire arrangements, particularly in industries that rely heavily on seasonal or vulnerable workforces. Businesses engaging labour hire providers should ensure appropriate due diligence is performed regarding licensing and workplace compliance obligations. 

 ATO data matching expands

The ATO announced two significant data-matching programs during August involving electoral roll information and motor vehicle registry data.

The programs will allow the ATO to compare information obtained from external government agencies against existing tax and superannuation records. The objective is to identify taxpayers who may not be meeting registration, reporting, lodgement or payment obligations, as well as support broader compliance and enforcement activities.

The continued expansion of data-matching initiatives highlights the increasing volume of information available to regulators and reinforces the importance of accurate tax, payroll and superannuation reporting. 

 Payday Super rulings have been finalised 

As businesses continue adapting to Payday Super, the ATO released three significant Law Companion Rulings, LCR 2026/1, LCR 2026/2 and LCR 2026/3, providing guidance on the operation of the new regime.

The guidance addresses a range of practical issues arising from the transition away from quarterly superannuation obligations, including how transitional arrangements apply, when superannuation contributions will be recognised for compliance purposes, and how the revised Superannuation Guarantee Charge framework operates under Payday Super. Particular attention is given to the treatment of contributions made during the transition period, the cessation of certain legacy offset arrangements, and the circumstances in which employer contributions can be used to reduce or eliminate Superannuation Guarantee Charge liabilities. 

New survey reveals positive Payday Super uplift

Early industry data suggests many employers have moved quickly to align superannuation payments with employee pay cycles following the introduction of Payday Super.

New payroll data released by MYOB indicates superannuation payments were made significantly more frequently during July compared with pre-reform periods, while the proportion of employers paying wages and superannuation during the same week increased substantially. The findings suggest many businesses have successfully transitioned away from the former quarterly contribution cycle and are embedding superannuation payments within their regular payroll processes.

The data is particularly noteworthy given concerns raised before implementation that industries with variable cash flow, including retail and hospitality, may experience greater challenges adapting to the new requirements.

New survey reveals positive Payday Super uplift

Early industry data suggests many employers have moved quickly to align superannuation payments with employee pay cycles following the introduction of Payday Super.

New payroll data released by MYOB indicates superannuation payments were made significantly more frequently during July compared with pre-reform periods, while the proportion of employers paying wages and superannuation during the same week increased substantially. The findings suggest many businesses have successfully transitioned away from the former quarterly contribution cycle and are embedding superannuation payments within their regular payroll processes.

The data is particularly noteworthy given concerns raised before implementation that industries with variable cash flow, including retail and hospitality, may experience greater challenges adapting to the new requirements.

Concerns over musicians' retirement entitlements 

Industry groups have continued to raise concerns regarding the implementation of Payday Super. The Media, Entertainment and Arts Alliance recently reported that some businesses engaging musicians may be seeking to shift the cost of superannuation obligations back onto workers through revised fee arrangements or changes to engagement structures.

The issue highlights a broader challenge arising from Payday Super implementation, namely that employers must ensure compliance obligations are met without reducing employee entitlements. Businesses should review contract and remuneration arrangements carefully to ensure they remain consistent with superannuation and workplace law requirements.  

Plans to establish dedicated Fair Work Court  

The Federal Government has announced plans to establish a dedicated Fair Work Court aimed at providing a simpler and more accessible pathway for resolving workplace disputes.

The proposed court would be staffed by specialist workplace relations judges and is intended to improve the efficiency of resolving matters such as wage underpayment claims. Consultation on the design and operation of the court is expected to occur over the coming months.

While the final structure remains uncertain, the proposal reflects the continued focus on strengthening workplace compliance and enforcement. Employers may wish to use the announcement as an opportunity to review award coverage, employee classifications and payroll practices.