Payday Super Is Coming: What Every Employer Needs to Do Before 1 July 2026
January 27, 2026
A major shift is coming to payroll that will change how every Australian employer handles superannuation. Payday Super became law on 4 November 2025, and from 1 July 2026, paying super will no longer be a quarterly task. It will become part of every pay cycle.
While this reform aims to close the nation’s $6.25 billion unpaid super gap, it also brings new compliance expectations and practical changes for businesses.
Here’s what the new rules mean for you — and how to prepare well ahead of time.
What’s Changing?
From 1 July 2026, employers must:
- Pay superannuation guarantee (SG) contributions at the same time as wages, not weeks or months later.
- Ensure those contributions reach employees’ super funds within seven business days of payday.
- Avoid late payments, as any delay will trigger the Superannuation Guarantee Charge (SGC) — including missed super, interest, and administration penalties.
Once the SGC is assessed, additional interest and penalties may apply if the liability isn’t paid promptly. Although SGC amounts will generally be deductible, late‑payment penalties will not be.
The ATO will retire the Small Business Superannuation Clearing House (SBSCH) from 1 July 2026.
If you currently rely on the SBSCH, you’ll need to arrange an alternative solution before the transition deadline.
Not just another compliance exercise?
While Payday Super may seem like another compliance burden, there are some advantages to this new system.
- Less Administration
Aligning super with payroll eliminates big quarterly payment deadlines — reducing bottlenecks, manual catch‑ups, and last‑minute reconciliations.
- Lower Compliance Risk
The ATO will use real‑time data matching to identify issues early, giving you more oversight and fewer surprises. Paying consistently on time is likely to categorise your business as low risk, resulting in fewer compliance interactions.
- Smoother Cash Flow
Many employers find that smaller, more regular super payments are easier to manage than large quarterly amounts.
- Stronger Employee Trust
Employees will be able to see super contributions arriving in real time, improving transparency — something that can strengthen engagement and retention.
How to Get Ready: Practical Steps for Employers
Although employers have 6 months until the new rules take effect, we recommend business owners start preparing now by:
- Reviewing Your Payroll Software
Most common systems (Xero, MYOB, QuickBooks) already support more frequent super payments — but you’ll still need to confirm your setup and schedule any required updates or add‑ons.
- Map Out Your Pay Cycles
Work out your pay frequencies (weekly, fortnightly, monthly) and calculate the seven‑day window for each to ensure nothing is missed.
- Educate Your Payroll Team
Make sure the staff responsible for payroll understand the new obligations. The ATO has online resources and webinars available to support the transition.
- Plan Cash Flow Early
Shifting to more frequent super payments now can help your business adjust gradually before the rules become mandatory.
- Track and Review Payments Regularly
Establish a monthly internal check to confirm contributions have cleared into employees’ super funds. Stay alert for ATO updates as final guidance is released.
If you outsource payroll, contact your provider soon — many have already started updating their systems in preparation for Payday Super.
The Bottom Line
Payday Super is more than a regulatory update — it’s a significant shift in how employers manage payroll, cash flow, and compliance. With just over six months until commencement, preparation now will mean a smoother transition later.
We can help.
If you’d like support reviewing your payroll systems, planning workflows, or understanding how Payday Super affects your business, reach out to one of our team members anytime.