May 7, 2026

Two Big Changes Coming for Cosca Clients — Same-Day Super and New ID Requirements

Article Summary:

From 1 July 2026, two significant changes will affect every business owner and individual we work with. The first is Payday Super — superannuation will need to be paid on the same day as wages, not quarterly. The second is a new requirement that all accounting and financial services firms identify their clients, including existing ones, in the same way a bank does. Here’s a plain-English explainer of what’s changing, why it’s happening, and what it means for you.

Change 1: Payday Super Starts 1 July 2026

If you employ staff, this is the bigger change of the two. From 1 July 2026, you’ll need to pay your employees’ superannuation guarantee at the same time you pay their wages — not quarterly, the way most businesses do today.

It’s officially called Payday Super, and it’s law. The Treasury Laws Amendment (Payday Superannuation) Act 2025 was passed by Parliament in November 2025, and the start date of 1 July 2026 has been locked in by the Government and the ATO.

Here’s the practical version:

Today — you can pay super quarterly — by 28 October, 28 January, 28 April, and 28 July.
From 1 July 2026 — super contributions must reach your employees’ super funds within 7 business days of payday. Every payday.
If you pay weekly, fortnightly, or monthly — your super run will need to align with your pay run, every single time.

There’s also a related change: the way super is calculated will shift from “ordinary time earnings” (OTE) to a new term called “qualifying earnings” (QE). For most businesses the practical effect will be small, but it’s another reason to check your payroll setup before the deadline.

Why Payday Super Matters for Your Business

Three things are worth thinking about now.

1. Cash flow

Moving from quarterly to per-payday super means money leaves your account more often. If you pay staff weekly, you’re going from four super payments a year to fifty-two. The total isn’t changing — but the rhythm of your cash flow is.

For seasonal businesses across regional Queensland — cane growers, tourism operators, transport contractors, trades — this matters. The old quarterly super due dates often gave breathing room around tight months. From 1 July 2026, that buffer disappears.

2. Payroll systems

Your payroll software, clearing house, and bank all need to be Payday Super-ready. Most major payroll providers (Xero, MYOB, Employment Hero, KeyPay) are already updating their systems, but you’ll want to confirm what’s changing for your specific setup and run a test pay cycle before go-live.

There’s another piece worth noting: the ATO’s Small Business Superannuation Clearing House (SBSCH) closes on 30 June 2026. If you’ve been using the SBSCH, you’ll need to move to an alternative — your payroll software’s built-in clearing house, or one offered by a super fund, will usually be the easiest path.

3. Penalties for late super get tougher

Under the new rules, if super doesn’t arrive at the fund within 7 business days of payday, the Superannuation Guarantee Charge (SGC) kicks in — and the late-payment offset that exists today will no longer be available. The ATO has signalled a risk-based approach for the first 12 months (1 July 2026 to 30 June 2027), with low-risk employers — those who try to do the right thing and fix mistakes quickly — facing a softer touch. But after that, the framework gets stricter.

The plain takeaway: the sooner you start preparing, the more options you’ll have.

What You Can Start Doing Now

You don’t need to flip the switch tomorrow. But there are a few things worth getting on top of in the months between now and 1 July 2026:

Review your payroll software — make sure your provider is Payday Super-ready and find out when their update will be live.
Check your clearing house — if you use the ATO’s SBSCH, plan your transition to an alternative before 30 June 2026.
Look at your cash flow — model what super-on-payday looks like through your busiest and quietest months. The earlier you see the shape of it, the easier the change is to manage.
Review onboarding processes — make sure new employees nominate their super fund quickly and that the details are entered correctly. Errors will be more visible — and more expensive — under the new system.
Run a test pay cycle — once your payroll software is updated, do a dry run before 1 July to flag any issues.

Change 2: New ID Requirements for All Clients

The second change affects everyone we work with — businesses and individuals alike.

From 1 July 2026, accountants, financial advisers, lawyers, and a range of other professional service providers will be brought under Australia’s anti-money laundering and counter-terrorism financing laws (the AML/CTF regime). It’s known as Tranche 2 reform, and it’s the biggest change to client onboarding the accounting profession has seen in a generation.

In simple terms: we’ll need to identify our clients the same way a bank does.

What That Looks Like in Practice

If you’ve opened a bank account in the last few years, you’ll already know the drill. You provide ID — usually a driver’s licence or passport — and the bank verifies it before they’ll act for you. From 1 July 2026, our firm will need to do the same.

Here’s what to expect:

All new clients — will go through an identity verification process at onboarding, before we can begin providing services.
Existing clients — will also be asked for ID over time as we move through the transition. Even if you’ve been with us for years, please expect to be asked for identification at some point.
Beneficial owners of companies and trusts — will need to be identified — that means we’ll need to verify the people who ultimately own or control your business structures.
Ongoing monitoring — is part of the regime. We’ll review client information periodically — not because we suspect anything, but because the law requires it.
Record-keeping — is mandatory. Identity records must be securely held for at least seven years.

This is not Cosca being cautious. It’s a legal obligation, set by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 and administered by AUSTRAC. Around 100,000 businesses across Australia are coming into the regime at the same time — every accounting firm, law firm, and real estate agency in the country.

Why Is This Happening?

Australia has been one of the few developed countries that hasn’t yet extended its AML/CTF laws to professional services. The Financial Action Task Force — the global body that sets standards for financial crime prevention — has been recommending the change for over a decade. The 2024 amendments bring Australia into line with international practice.

The aim is to make it harder for criminals to use professional service providers to disguise the movement of money. The vast majority of accounting clients have nothing whatsoever to do with that — but the regime applies to everyone, because the controls only work if they’re universal.

What You Don’t Need to Worry About

A few reassurances are worth stating clearly:

This isn’t about scrutinising your finances — it’s about confirming who you are.
It’s not unique to Cosca — every accounting and financial services firm in Australia will be doing the same thing from 1 July 2026.
It’s not a sign that anything is wrong — if we ask you for ID, it’s because we have to. There’s nothing personal about it, and nothing you’ve done to trigger it.
Your information is protected — we have strict obligations under both the AML/CTF rules and the Australian Privacy Principles to handle the data securely.

We’ll do everything we can to make the process as quick and painless as possible — most ID checks take only a few minutes, and many can be completed digitally.

FAQs

Do I need to do anything before 1 July 2026 about Payday Super?

If you employ staff, yes. Talk to your payroll software provider about their Payday Super readiness, plan your move away from the ATO’s SBSCH if you use it, and model what per-payday super looks like for your cash flow. Your accountant or bookkeeper can help you pull this together.

What if I already pay super monthly — am I ready?

Paying monthly is a great start, but it’s not the same as Payday Super. From 1 July 2026, super must reach the fund within 7 business days of each payday — not just within the month. You’ll still need to check your payroll software is configured for the new rules.

I’ve been a client of Cosca for years. Why do I need to give you ID now?

Because the law has changed. The new AML/CTF rules apply to all clients of an accounting firm, not just new ones. Every firm in Australia will be working through the same process with their existing clients between 1 July 2026 and the years that follow. There’s nothing we can do to opt out — and there’s nothing personal about us asking.

What ID will I need to provide?

Generally, a current Australian driver’s licence or passport will be enough for an individual. For companies and trusts, we’ll also need to verify the people who ultimately own or control the entity. We’ll let you know exactly what’s needed when the time comes — and in many cases, it can be done digitally.

Will the small business compliance approach cover me if I’m late on super?

The ATO has flagged a risk-based approach for the first year of Payday Super (1 July 2026 to 30 June 2027). Low-risk employers — those who try to pay on time and fix any errors quickly — will face the lightest touch. From 1 July 2027, the framework tightens. The safest course is to be ready for go-live, not relying on the transition period.

Does the SBSCH closure affect me?

If you currently use the ATO’s Small Business Superannuation Clearing House to pay your employees’ super, yes. The SBSCH closes to existing users on 30 June 2026. You’ll need to move to an alternative — your payroll software’s built-in clearing house, or one offered by a super fund, are the most common paths.

Two Changes, One Theme: Get Ahead of It

Both of these changes are about transparency — making sure super reaches employees on time, and making sure the financial system can’t be misused. They’re not optional, but they don’t need to be stressful either. With a bit of preparation, the transition can be smooth, and you can keep running your business or managing your finances on your terms.

Need a Hand Getting Ready for 1 July 2026?

Our Strategic Accounting and Business Advisory teams are already working with clients across our offices in Innisfail, Ingham, Townsville, Charters Towers, and South East Queensland to plan for both changes. Whether it’s reviewing your payroll setup for Payday Super, or simply walking you through the new ID process, we’re here to make it straightforward. The sooner you start, the more options you’ll have.