Running a business already means juggling payroll, cash flow and compliance – and from 01 July 2026, there’s a significant and mandatory change that will reshape how you manage superannuation for your employees.

Payday Super will apply to all businesses that pay salaries or wages.

The aim is simple: make sure employees receive their super at the same time they’re paid, helping close Australia’s unpaid super gap and improving retirement outcomes – particularly for casual and part-time workers.

Payday Super changes

From 01 July 2026, superannuation guarantee (SG) contributions will need to be paid at the same time as wages, rather than quarterly. Employers will have seven business days from payday to ensure super contributions are received by employees’ super funds.

If super isn’t paid on time, the Superannuation Guarantee Charge (SGC) will apply. This means paying the outstanding super plus interest and an administration charge. Once the SGC is assessed, further interest and penalties may apply if the amount isn’t paid in full.

Unlike the current system, SGC amounts will generally be tax-deductible, although penalties associated with late payment won’t be.

Another important change is the retirement of the Small Business Superannuation Clearing House (SBSCH) from close of business on 30 June 2026. Businesses that currently rely on this platform to pay employee superannuation contributions will need to move to an alternative solution.

Beyond compliance, the impact is meaningful. Earlier super payments are expected to significantly improve retirement balances, with the average worker estimated to be thousands of dollars better off over time.

Why Payday Super is good for business

While Payday Super may sound like extra administration at first, it can actually streamline payroll and strengthen your position as an employer.

• Less admin – Paying super alongside wages removes the pressure of quarterly payment deadlines.
• Lower compliance risk – Faster ATO data-matching means issues are identified earlier, reducing the chance of penalties building up.
• Stronger employee trust – Employees can see their super being paid regularly, which supports engagement and retention.
• Smoother cash flow – Smaller, more frequent payments are often easier to manage than large quarterly amounts.

The ATO has indicated it will take a risk-based approach in the first year, focusing on education and support. Businesses that pay on time are likely to be considered low risk, with fewer compliance checks.

Preparing for Payday Super

There’s still time before the changes begin, but early preparation will make the transition much easier.

1. Review your payroll software
   Most modern systems such as MYOB, Xero and QuickBooks already support payday-aligned superannuation processing. Check your setup and confirm whether any updates or integrations are required.
2. Understand your pay cycles
   Identify how often you pay your employees (weekly, fortnightly or monthly) and factor in the seven-business-day payment window.
3. Brief your team
   Make sure anyone involved in payroll understands the new rules. The ATO provides free resources and webinars to support the transition – take a look at ato.gov.au/payday super.
4. Plan your cash flow
   Moving to more frequent super payments well in advance of the 01 July launch date can help reduce cash flow pressure later and avoid surprises.
5. Monitor and review
   Put a regular check in place to confirm super payments are clearing correctly, and stay across ATO guidance as it’s finalised.

If you outsource payroll, it’s a good idea to speak with your provider early – many payroll vendors are already updating their systems to support Payday Super.

The bottom line

Payday Super is more than a compliance change. Done well, it can make payroll more efficient, improve employee confidence, and reduce long-term compliance risk.

Payday Super is as significant a change to business payroll processes as SuperStream and Single Touch Payroll. To help you understand the changes to your business's payroll and superannuation processing, download our Payday Super Fact Sheet here.

If you’d like help reviewing your payroll setup or planning for the transition, get in touch with our Accounting team. We can help ensure your business is ready well before Payday Super begins on 01 July 2026.