PwC’s April 2026 Tax Briefing focused on two developments currently front of mind for many organisations:
- Preparing for the introduction of Payday Super from 1 July 2026: This session featured Alana Haiduk, Shane Pinto, and Maddy Dickson.
- Next: Daniel Levin, Theo Denovan, and guest speaker from IFM Investors, Tristan Tan, discussed how innovation, particularly artificial intelligence (AI), is reshaping how tax functions operate.
Payday Super: Structural, operational, and transitional impacts
Payday Super represents a significant shift from quarterly compliance to a real-time superannuation framework, requiring contributions to be received and able to be allocated within seven business days of payday. The discussion focused on some of the key practical challenges organisations are experiencing as they prepare for this change.
The move from a quarterly maximum contributions base to a rolling annual cap, alongside an increase in the cap amount, has particular implications for higher-income employees, variable remuneration, and total fixed remuneration arrangements. In some scenarios, superannuation contributions may be frontloaded earlier in the year, resulting in uneven cash payments and requiring careful consideration of remuneration design and employee communications. Similarly, for some employees, variable remuneration may be more skewed towards superannuation in comparative terms to prior years.
The transitional provisions were identified as a key risk area. Sequencing rules around June quarter contributions, the removal of the late payment offset, and the potential bunching of contributions into a single financial year may increase the risk of breaching concessional contribution caps for some employees in FY27. With respect to the latter, employers were encouraged to identify affected employees early and actively manage these issues, rather than relying on the possibility of future legislative amendments.
Operational readiness remains critical. Payroll systems, clearing house arrangements, and internal processes must support faster payments, accurate reporting, and timely resolution of rejected contributions. Clear ownership across payroll, HR, finance, and tax teams was emphasised as essential under the new regime.
Innovation and AI in the tax function
The session explored how AI is becoming increasingly embedded in day-to-day tax workflows. Tools integrated into applications such as Excel, Word, and PowerPoint are already supporting tasks with the conversation focusing on practical use cases, including interrogating agreements, identifying and reviewing tax clauses, retrieving information from large document sets, summarising legislative materials, generating slides, audio, and infographics from source materials, drafting memos and file notes, helping with reconciliations, and reducing manual work across Excel, Word, and PowerPoint.
The discussion highlighted that strong outcomes from AI depend on appropriate context, domain expertise, and human review. The panel stressed that good results come not just from prompts, but from giving models relevant source material, examples, instructions, constraints, and iterative feedback. AI was described as most useful when treated like a junior team member that needs context, supervision, and review.
Managing accuracy risks, hallucinations, and data security concerns requires careful use of work-provided tools and appropriate controls. AI was consistently positioned as a capability that enhances productivity and insight, rather than replacing professional judgement.
Overall, the session reinforced that both Payday Super and AI adoption require changes in mindset and operating models. Payday Super demands stronger governance, real-time processes, and clear internal communication. At the same time, innovation presents opportunities for tax teams to improve efficiency, insight, and documentation when applied thoughtfully and with appropriate oversight. Organisations that invest early in preparation, systems, and capability will be better positioned to manage risk and meet evolving expectations.
Watch this Tax Briefing on demand here.
