The new Payday Super rules are shaking up how Australian employers pay super — and it’s coming sooner than you think. From 1 July 2026, super payments will need to align with each payday, not quarterly deadlines.
Why Payday Super is Happening
For years, the quarterly super system has been criticised for leaving employees short-changed. The ATO estimates billions in unpaid super each year. Employees often don’t notice missing payments until it’s too late, and employers juggle compliance risks and cashflow headaches.
The Payday Super reform, introduced into Parliament in October 2025, is designed to resolve this by requiring super to be paid with each pay cycle. This change aims to:
- Make super contributions more transparent and trackable.
- Improve retirement outcomes through earlier compounding.
- Strengthen ATO compliance and reduce unpaid super debts.
In short, while this will clearly cause some cashflow headaches for small business, it aims to provide fairness, accountability, and giving workers control over their super.
What Will Change Under Payday Super
Here’s a snapshot of what’s different under the new rules:
| Current System | Payday Super (from 1 July 2026) |
| Super paid quarterly (by the 28th after each quarter) | Super paid within 7 days of each payday |
| Processed via Small Business Super Clearing House (SBSCH) | SBSCH will close for all users from 1 July 2026 |
| Funds have up to 20 business days to allocate payments | Funds must allocate within 3 business days |
| ATO compliance checked quarterly | Real-time data via updated Single Touch Payroll (STP) |
This means your business will need to manage super just like wages — every pay run.
What This Means for Employers
For small business owners, trades, and professional practices, Payday Super brings both benefits and challenges.
Cashflow Impact
Quarterly super payments often provided a breathing space. With Payday Super, those funds leave your account more regularly — reducing buffer time. Now is definitely the time to review your cashflow forecasts and liquidity management.
Payroll & Systems Upgrade
You’ll need payroll software that can calculate and pay super automatically within seven days. Most modern systems like Xero, MYOB, and QuickBooks already have the functionality. If your system isn’t ready, talk to your provider soon.
Compliance Pressure
Missed or late payments will attract penalties under the Super Guarantee Charge (SGC) — and the ATO will have more visibility through enhanced STP reporting. Also ensure your team understands what counts as Qualifying Earnings (the new measure for SG under Payday Super).
Practical Example
Let’s say you run a plumbing business in Brisbane and pay your four employees fortnightly. Under the current rules, you might set aside their super monthly — around $5,000 at a time.
From 1 July 2026, you’ll need to send roughly $2,500 in super every two weeks at apyroll time, reaching employees’ funds within seven calendar days. That means smaller, more frequent payments — but also less risk of big compliance penalties later.
You should automate this by using compulsory STP-enabled software.
How to Prepare Your Business
Here’s a clear action plan to make the transition smooth:
1️⃣ Review Your Payroll Software
Confirm it supports Payday Super payments and reporting. Look for options to automate fund transfers.
2️⃣ Model Your Cashflow
Smaller, more frequent payments can affect working capital. Update your budgets to include super as a regular outflow.
3️⃣ Talk to Your Accountant or Advisor
At Accountants 2 Business, we’re helping clients model their cashflow, upgrade payroll systems, and train staff ahead of time. Don’t wait until June 2026 — start testing now.
4️⃣ Educate Your Team
Your payroll officer, HR team, and bookkeeper all need to understand what’s changing and how to process payments correctly.
5️⃣ Monitor ATO Updates
The ATO’s draft Practical Compliance Guideline (PCG 2025/D5) gives insight into transitional relief and expectations. Stay updated here 👉 ATO Payday Super overview.
What Employees Should Know
Employees will start seeing super paid sooner, which means:
- More frequent updates in their super fund app. 📲
- More time for compound growth.
- Faster detection of missed or late payments.
Encourage your team to check that their super fund details (especially USI and member number) are correct in your payroll system — errors can delay allocations.
Common Questions About Payday Super
When does Payday Super start?
It’s proposed to commence 1 July 2026 (subject to Parliament passing the law).
Will the ATO allow any grace period?
Yes — the draft ATO guideline suggests transitional leniency for employers making genuine attempts to comply during the first year.
What happens to the Small Business Superannuation Clearing House (SBSCH)?
It will be shut down from 1 July 2026, so small employers must switch to private clearing houses or direct payment methods. It is already closed to new employers who must use auto super enabled software.
Resources & Further Reading
- 🏛️ ATO – Payday Superannuation Overview: ato.gov.au/payday-superannuation
- 👩💼 Accountants 2 Business Resource – Our Guides: accountantbusiness.com.au/our-guides
💬 In Summary
The shift to Payday Super is one of the biggest changes to Australian payroll in decades. It’s designed to protect workers, promote transparency, and modernise super compliance — but it does mean businesses need to adjust systems, cashflow, and processes.
By acting now, you’ll save yourself stress later — and position your business as a responsible employer who values staff financial wellbeing.
Take Action
Need help preparing your systems or reviewing your cashflow before Payday Super arrives?
👉 Book a free introduction meeting with Janelle Bartlett today:
🔗 Schedule a meeting here
Or explore our free business guides to stay ahead:
📘 Download here
