We support the ATO’s objective of providing practical administrative clarity for the operation of Payday Super, particularly with respect to the treatment of payments made outside an employer’s established payroll cycle.

Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia and the Institute of Public Accountants (IPA) ( the Joint Accounting Bodies) provided feedback in response to the ATO’s draft Legislative Instrument and Explanatory Statement on out‑of‑cycle qualifying earnings under the Payday Super reforms. We support the ATO’s objective of delivering practical guidance, particularly in clarifying how payments made outside regular payroll cycles such as bonuses, commissions, allowances, advances and back‑payments should be treated.

Overall, we consider the draft to be a valuable and practical component of the broader Payday Super framework. However, we have identified a number of targeted refinements that would improve clarity, consistency and ease of implementation. In particular, we recommend further guidance on key concepts such as an “established timing, pattern or schedule,” as well as clearer categorisation of payment types supported by real‑world examples.

We also highlight the importance of aligning the instrument with broader Payday Super compliance obligations, including contribution timing, reporting requirements and potential penalty risks. From an operational perspective, we recognise that implementation may present challenges, particularly for smaller employers, and suggest simplified approaches, safe harbour rules and transitional compliance support.

We further consider that the Explanatory Statement would benefit from enhanced practical guidance, including worked examples and decision tools. Our recommendations are intended to support consistent application, reduce compliance uncertainty, and facilitate effective implementation across a diverse employer base.