From 1 July 2026, employers will need to pay super much closer to payday. Instead of paying super quarterly, contributions will generally need to be paid at the same time as salary and wages.
This change is known as Payday Super. It is a major shift for employers, particularly for businesses that currently manage super as a quarterly payment cycle. Preparing early will help reduce pressure on cash flow, payroll processes and compliance once the new rules begin.
The ATO has released guidance to help employers get ready. Based on that guidance, there are a few key steps businesses should start working through now.
Understand what is changing
Under Payday Super, super guarantee payments must generally reach an employee’s super fund within seven business days of payday. Some exceptions may apply, including for new employees.
The contribution amount will be calculated as 12% of an employee’s “qualifying earnings”. This is a new term that builds on, and expands, the previous concept of ordinary time earnings.
If super is not paid on time, in full and to the correct fund, the super guarantee charge may apply. This can create extra cost and administration for employers, so it is important to have the right systems and processes in place before the deadline.
Plan your transition early
The ATO is encouraging employers to start planning now, rather than waiting until the new rules come into effect.
As part of your preparation, it is worth reviewing:
- when your business will move to Payday Super, noting that early adoption is allowed
- whether your cash flow can support the move from quarterly super payments to more frequent payments
- whether employee super fund details are complete and up to date
- whether your payroll process will support the new timing requirements
- who in your team will be responsible for checking, approving and correcting super payments
This is also a good time to look at how super fits into your broader payroll workflowp. Small gas that are manageable under a quarterly system may become more difficult once super needs to be processed closer to each pay run.
Check your systems and service providers
Once you have decided when your business will move to Payday Super, the next step is to make sure your systems are ready.
This may include checking your payroll software, clearing house arrangements, super fund portals and any internal approval processes. Your software provider may release updates or guidance in the lead-up to 1 July 2026, so keep an eye out for changes that affect your payroll setup.
If your business currently uses the Small Business Superannuation Clearing House, it is important to note that it will close permanently from 1 July 2026 as part of the Payday Super reforms.
You should also think about how errors will be handled. For example, your business may need a clear process for correcting rejected payments, incorrect super fund details or late contributions.
Do not leave it until the deadline
From 1 July 2026, Payday Super will be mandatory.
Businesses that continue to pay super quarterly after the new rules begin may face compliance action from the ATO. Preparing now gives your business time to review cash flow, update payroll processes and resolve any issues before the change becomes compulsory.
If your business needs help getting ready for Payday Super, reach out to our team. We can help you understand what the changes mean for your payroll process, review your current setup and identify any issues well before 1 July 2026.
