Practice Updates - April 2026

Key Announcements on Payday Superannuation

Starting 1 July 2026, employers must pay superannuation at the same time as wages. This change is significant and requires immediate attention. Here’s what you should do now:

• Review your payroll system.

• Update internal processes and controls.

• Plan your cash flow around more frequent super payments.

Our team at Lynden Group can help you assess your current setup, identify gaps, and implement practical solutions to stay compliant and manage cash flow effectively under the new Payday Super rules.

Late Payment Offset Will No Longer Be Available

The Late Payment Offset (LPO) will be phased out with the introduction of Payday Super. Here are some key dates to remember:

• The final quarter to apply LPO is the period ending 31 March 2026.

• Superannuation Guarantee (SG) contributions for this quarter are due by 28 April 2026.

• Employers can still claim LPO for eligible late payments made up to 30 June 2026 when lodging an SGC statement. What’s Changing from 1 July 2026?

From 1 July 2026, under the Payday Super regime:

• Late SG payments will no longer reduce SGC liabilities.

• Payments will be automatically applied to the oldest outstanding obligations.

This means late or incorrect super payments will become significantly more costly. What should you do now?

• Ensure super is paid in full, on time, and to the correct fund.

• Review your payroll systems and processes.

• Prepare for more frequent super payments under Payday Super.

Lynden Group can help you review your payroll setup and ensure your business is ready for the upcoming changes. Get in touch with our team to discuss your next steps.

Low-Income Workers Get a Better Super Tax Break

The Government has legislated enhancements to the Low Income Superannuation Tax Offset (LISTO), effective from 1 July 2027.

What’s Changing?

• The income threshold will increase from $37,000 to $45,000.

• The maximum offset will rise from $500 to $810.

LISTO is designed to ensure that low-income earners are not disadvantaged by contributing to super. It effectively refunds the tax paid on concessional super contributions for eligible individuals.

These updates reflect recent increases in the Superannuation Guarantee rate and aim to improve retirement outcomes for lower-income workers.

Pillar Two: Updated Guidance and April Information Session

The ATO has released updated guidance on the Global and Domestic Minimum Tax rules under Pillar Two. The updates provide additional information to our existing guidance, covering:

• Lodgment of the GloBE Information Return (GIR) and the combined global and domestic minimum tax return (CGDMTR).

• Lodgment deferrals.

• Misaligned fiscal years.

• Legislative instrument examples.

• ATO practical administrative approaches.

• Pillar Two interactions with Australian foreign income tax offset (FITO) rules.

  
  

Early Assessment Recommended

We recommend that multinational groups assess their exposure to Pillar Two early, particularly regarding new reporting obligations (GIR and CGDMTR) and potential impacts on existing tax structures, including FITO positions.

We also encourage affected clients to stay updated on ATO guidance and seek advice to ensure timely compliance and avoid unexpected tax outcomes.

We help businesses navigate complex cross-border tax changes like Pillar Two, from understanding exposure to preparing new reporting and optimizing tax outcomes. If your group operates across multiple jurisdictions, feel free to reach out to discuss how these changes may apply to you.

Privacy Notice – Combined Global and Domestic Minimum Tax Return

The ATO has also released a privacy notice regarding the Combined Global and Domestic Minimum Tax Return (CGDMTR). This notice provides clarity on the personal information collected during the lodgment process.

This includes tax file numbers (TFNs) and contact details of authorized representatives and relevant group entities, which are used to verify authority, administer the return, and enable the ATO to contact the appropriate parties when additional information is required.

While it is not mandatory to provide a TFN, failing to do so may result in delays in processing the return. Additionally, certain information may be collected under the Australian Business Number (ABN) framework and used to update records on the Australian Business Register.

Where authorized by law, this information may also be shared with other government agencies, including Services Australia, the Australian Bureau of Statistics, and law enforcement bodies, as well as with international treaty partners under existing tax agreements.

Taxable Payments Annual Report Lodgment Reminder

Businesses that make payments to contractors may need to report these payments and lodge a Taxable Payments Annual Report (TPAR). Many businesses lodge a Taxable Payments Annual Report (TPAR) to report payments made to contractors for providing the following services:

• Building and construction

• Courier and road freight

• Cleaning

• Information technology

• Security, investigation, or surveillance.

The ATO began applying penalties to businesses that have not lodged their TPAR from 2024 or previous years and/or have been issued three reminder letters about their overdue TPAR.

Businesses that do not need to lodge a TPAR can submit a 'non-lodgment advice (NLA) form. Businesses that no longer pay contractors can also use this form to indicate that they will not need to lodge a TPAR in the future.

Conclusion

If you’d like help navigating these latest updates and understanding what they mean for your business, reach out to Lynden Group. Our team can support you in assessing the impact, staying compliant, and planning with confidence.

Email: info@lyndengroup.com