H. AntiMoney Laundering & CounterTerrorism Financing (AML/CTF) – What This Means for Archer and Our Clients

The Australian Government is expanding its AntiMoney Laundering and CounterTerrorism Financing (AML/CTF) regime, with professional service providers (including accounting and advisory firms) falling within the scope from 1 July 2026

This will introduce additional regulatory obligations for both our firm and our clients, including:

• Enhanced client identification and verification procedures (KYC – Know Your Customer)
• Ongoing monitoring of transactions and business relationships
• Risk assessments and documentation requirements
• Reporting obligations to AUSTRAC where applicable

Impact on Our Engagement

To meet these obligations and maintain compliance, we will be required to implement additional processes, controls and documentation across our engagements.

Accordingly:

Enhanced onboarding and ongoing compliance requirements
Additional steps may be required at onboarding and periodically throughout our engagement, including provision of supporting identification, ownership and funding source information.

Increased information requests
We may request further information or documentation from time to time to satisfy ongoing monitoring and regulatory requirements.

Changes to access to client systems and accounts
To align with AML/CTF obligations we will review and where necessary restrict or formalise access to client bank accounts, payroll platforms and other financial systems. This may include:

• limiting authority levels and payment initiation rights (IE uploading ABA files)
• implementing clearer approval workflows
• documenting user access and responsibilities
• clearer separation between processing and authorisation responsibilities
• enhanced documentation and audit trails

These increased compliance costs will necessarily be reflected in our engagement terms and future fee arrangements.

We have worked to keep this as streamlined as possible and will work with you to minimise disruption, however these changes are mandated under law and apply across the profession, not just to Archer.

Payroll, Pay Day Super & Fair Work Changes – Effective 1 July 2026

A number of important payroll and Fair Work changes come into effect from 1 July 2026, with direct impacts on wages, superannuation and employee entitlements.

Here’s what employers need to know:

1. Minimum Wage & Award Rate Increases

• The National Minimum Wage increases to $26.44 per hour ($1,004.90 per week).
• Modern award rates increase by 4.75%.
• Applies from the first full pay period on or after 1 July 2026.

What this means for you:

• Payroll systems must be updated immediately
• Employee classifications and award alignment should be reviewed
• Enterprise agreements should be checked for compliance with updated award minimums

2. Introduction of “Payday Super” from 1 July 2026

One of the largest payroll compliance changes in recent years that will impact most of our clients commences from 1 July 2026.

Under the new Payday Super rules, employers will generally be required to pay superannuation at the same time employees are paid, rather than quarterly.

This reform significantly increases the importance of:

• integrated payroll systems
• cashflow management
• automated super processing
• payroll accuracy and timeliness

The ATO has made it clear it will rely heavily on Single Touch Payroll data and increased real-time compliance monitoring.

Additionally the ATO’s Superannuation Clearing House ceases at 30 June 2026 and can no longer be used. Please contact us if you are using this so we can assist you with the most efficient system change for your business needs.

Our Recommendation

The most efficient and lowest-risk approach will be to:

• integrate super directly into payroll software to provide greatest efficiency and accuracy; and
• automate the super clearing process as part of each pay cycle.

Clients already using integrated payroll and super functionality will generally experience a smoother transition.

For clients where Archer processes payroll and you are not yet using an integrated super solution, our team will be proactively assisting with:

• software setup
• workflow changes
• process reviews
• transition planning

If you are unsure whether your current payroll setup is Payday Super ready, please contact your Archer advisor.

3. Changes to How Super is Calculated & Reported

• Super will be calculated on “qualifying earnings”, not just ordinary time earnings
• Continued 12% super guarantee rate applies
• STP reporting expands to reflect new earnings definitions and liabilities

What this means for you:

• Payroll coding and mapping may require updates
• Ensure systems can capture broader earnings types correctly

4. Paid Parental Leave Expansion

• Government-funded Paid Parental Leave increases to 26 weeks
• Paid at the National Minimum Wage