Payday Super & what you need to know
One of the most significant changes to Australia's superannuation system in years is just around the corner. From 1 July 2026, the way employers pay superannuation will change fundamentally — and if you have employees, this affects you.
We want to make sure you're informed, prepared, and ahead of the curve, so here's everything you need to know.
What is Payday Super?
Currently, employers are required to pay their employees' superannuation guarantee (SG) contributions at least once per quarter. Under the new Payday Super rules, this changes — significantly.
From 1 July 2026, super must be paid at the same time as wages — every pay run — and must be received by the employee's super fund within 7 business days of payday. There are some exceptions, such as a 20 business day window for newly onboarded employees.
Key Changes at a Glance
• Super must be paid every pay run — not quarterly
• Contributions must reach the employee's fund within 7 business days of payday
• Super is calculated on Qualifying Earnings (QE) at 12% — a new definition that includes salary sacrifice contributions and ordinary time earnings
• The ATO's Small Business Superannuation Clearing House (SBSCH) is closing — if you use this, you'll need an alternative before 30 June 2026
• Late payments will trigger the Superannuation Guarantee Charge (SGC), with penalties of up to 200% of the shortfall
What This Means for Your Cash Flow
This is a big shift — and for many businesses, the greatest impact will be felt in cash flow rather than compliance. Under the current quarterly model, employers can hold super funds for up to three months. Under Payday Super, those funds move out of your account with each pay run.
July 2026 in particular will be a double up month for many businesses — the final quarter's super under the old rules (due 28 July) will overlap with the first Payday Super obligations. Planning ahead for this is critical.
What You Should Do Now
There are several steps we recommend taking before 1 July to ensure a smooth transition:
• Review your payroll software — Confirm your payroll provider is Payday Super-ready. Most major platforms are updating to accommodate the new rules.
• Check your clearing house — If you use the ATO's Small Business Superannuation Clearing House (SBSCH), you must switch to an alternative SuperStream-compliant solution before 30 June 2026.
• Update pay codes — Ensure your payroll system is aligned with the new Qualifying Earnings (QE) definition for accurate super calculations.
• Plan for cash flow — Review your cash flow forecasts to account for more frequent super outflows and budget for the July 2026 double-up period.
• Check contractor arrangements — Some contractors may fall within the extended definition of 'employee' for super purposes — now is the time to review these arrangements.
We're Here to Help
If you have any questions about how Payday Super affects your business, or you'd like to review your payroll processes and super obligations ahead of 1 July, please don't hesitate to reach out. We'd love to help you get across the line smoothly.
Call us today 08 6288 8670