At Seed Accounting, we keep a close eye on ATO activity so you don’t have to. This month’s update highlights key compliance risks and upcoming changes that may affect business owners, company directors and SMSF trustees. Staying informed and acting early can help avoid unnecessary penalties, interest and ATO scrutiny.
ATO Compliance Alert: Lodgment Deadlines & Penalties
The ATO has significantly increased enforcement activity in relation to late‑lodged tax returns. We are now seeing penalties applied far more routinely where lodgement deadlines are missed.
What the ATO is issuing
- Failure to Lodge on Time (FTL) penalties of up to $1,320
- General Interest Charge (GIC) on any unpaid tax liabilities
Importantly, both penalties and interest are non‑deductible and cannot be claimed for tax purposes.
Increased audit activity
In addition to financial penalties, the ATO has increased audit and review activity for taxpayers who:
- Lodge returns late, or
- Have a pattern of delayed compliance across multiple years
Late lodgement is now a key trigger for ATO scrutiny.
What we recommend
To avoid unnecessary penalties, interest and potential ATO review, we strongly recommend providing all outstanding information as soon as possible so returns can be finalised and lodged without delay.
If you believe you have already supplied everything required, or are experiencing difficulties obtaining documents, please contact us promptly so we can discuss next steps.
Director Penalty Notices (DPNs): A Growing Risk for Directors
The ATO is increasingly holding company directors personally liable for unpaid PAYG, GST and superannuation obligations through Director Penalty Notices (DPNs).
Failing to lodge on time — even where payment is not immediately possible — can significantly increase personal exposure. Directors experiencing cash‑flow pressure should seek advice early to understand their options and manage risk.
Payday Super Is Coming – What Employers Should Know
From 1 July 2026, superannuation will move to a “payday super” system. Instead of paying super quarterly, employers will be required to pay super each time wages are paid — whether weekly, fortnightly or monthly.
In simple terms:
- Super will be processed with every pay run
- Contributions must reach the employee’s super fund within 7 business days of payday
- The current quarterly payment model will be phased out
While the goal is to reduce unpaid super and improve employee outcomes, the change means less flexibility and tighter compliance expectations for businesses.
What this means for your business Many businesses will need to review:
- Cash flow, as super will be paid more frequently
- Payroll systems, to ensure super can be processed accurately each pay cycle
- Compliance processes, as the ATO will have greater visibility over payment timing
Businesses relying on manual or outdated payroll processes may find this transition more challenging.
How Seed Accounting can help
Although Payday Super does not start until 1 July 2026, preparing early can make the transition far smoother. We can assist with:
- Reviewing your payroll and super processes
- Assessing whether your systems are ready for Payday Super
- Identifying cash‑flow and compliance risks ahead of time
If you would like to discuss how Payday Super may affect your business, please contact the Seed Accounting team.
