Coco Hou CPA: Businesses must start preparing for new ATO super changes to avoid cashflow coma

Accounting expert and CEO of Platinum Accounting Australia, Coco Hou CPA is urging businesses to begin preparations for upcoming changes to Australian Taxation Office (ATO) superannuation regulations. From 1 July 2026, employers will be required to pay their employees' superannuation at the same time as their salary and wages.
 

The ATO's introduction of real-time super payments aims to streamline the system and ensure employees receive their entitlements promptly. The start date is designed to provide employers, super funds, payroll providers and other stakeholders sufficient time to adjust to the changes.
 

However, Coco Hou emphasised that businesses cannot afford to delay preparations.
 

"I am of the strong opinion that if many businesses do not start preparing now for the changes, they will face solvency issues once the new requirements kick in. Businesses will face a cashflow coma if they do not ready themselves now," Hou said.
 

"This isn't just about updating payroll systems. Businesses need to start thinking about how this will impact their cash flow management and ensure they have the resources and processes in place well ahead of the deadline."
 

Hou has outlined the key areas of focus businesses need to be looking at.
 

Review payroll systems

"While many businesses use systems such as Xero and MYOB, there are many other aspects to changes to payroll management," Hou said.
 

"Businesses need to ensure current systems can handle simultaneous superannuation and wage payments, and that other processes and administrative functions are updated as well."
 

Stronger integrity measures

"The requirement for superannuation payments to be made at the same time as employee pays are processed introduces higher levels of risk to the business," Hou said.
 

"While IT systems and other administrative activities will need to be updated, this will also give rise to the need for stronger integrity checks and fail-safe mechanisms.

"Businesses will need to identify where the increased risks are and how to manage them. In addition, they will also need more help with audits to identify issues."
 

Cashflow management

"Businesses will need to adjust their financial planning to accommodate real-time superannuation contributions. The impact for many businesses will be quite significant," Hou said.
 

"I am strongly urging businesses to review their debtor management to improve collection of payments."
 

Seek help

"Significant changes of this nature impose serious challenges for businesses. I urge businesses to seek advice from accountants or financial advisors to ensure compliance," Hou said.
 

"This will ensure businesses are ready in all respects for the changes ahead."
 

Staff training

"Once systems have been updated and new procedures and processes put in place, it will be essential for businesses to educate HR and payroll teams on the changes to avoid errors or delays," Hou said.
 

"Given the significance of the changes it is likely there will be fines and other penalties for not meeting the new requirements which will only place greater pressure on businesses financially."
 

Hou emphasised that while the new regulations may seem distant, time flies in business. Early preparation will prevent unnecessary stress and potential penalties down the line.
 

About Platinum Accounting Australia

Platinum Accounting Australia is a leading national accounting firm that has been operating in Australia since 2008. With a national footprint, the business offers a broad range of services for individuals and businesses of all sizes including tax planning, accounting, advisory and bookkeeping. Platinum Accounting Australia also offers a highly popular and growing licensee program for bookkeepers and accountants to assist them to grow as part of a respected national network.

www.platinumaccg.com.au