Payday Super: What Employers Need to Know Before July 2026

Big changes are coming to the way Australian businesses handle superannuation. From 1 July 2026, employers will need to pay super at the same time they pay wages - a reform known as Payday Super. This shift aims to improve retirement outcomes for employees and reduce unpaid super, but it also means businesses need to prepare now.

What is Payday Super?

Currently, superannuation contributions are paid quarterly. Under Payday Super, contributions must be paid on or before each payday and reach the employee's super fund within seven business days. For new employees or those who change funds, employers will have 20 business days for the first payment.

This change means:

• Super becomes part of your regular payroll process.

• The ATO will have earlier visibility of unpaid super, enabling faster compliance action.

• Employees benefit from more frequent contributions and compounding growth.

  
  

Why the Change?

The Government estimates that more frequent payments will help close the large gap in unpaid super and boost retirement savings. It also reduces the risk of non-payment, particularly for casual and part-time workers. Payday Super is now law, so businesses should start planning immediately.

Key Employer Obligations

From 1 July 2026:

• Pay super with wages: Contributions must be made in line with your payroll cycle.

• Meet deadlines: Funds must receive contributions within seven business days of payday.

• Update reporting: Single Touch Payroll (STP) will require additional data, including “Qualifying Earnings.”

• Failure to comply will trigger the Superannuation Guarantee Charge (SGC), which includes penalties and interest.

  
  

Impact on Cash Flow

Moving from quarterly to payday payments may significantly affect cash flow. Businesses will need to maintain higher working capital reserves and forecast more frequently. The month of July 2026 could be particularly challenging, as many businesses will face a “double hit”— paying both the previous quarter’s super and the new payday contributions in the same month.

What Should You Do Now?

Early preparation is key. Here’s how to get ready:

• Review payroll systems: Ensure your software can process super per pay cycle and integrate with STP.

• Plan for cash flow: Update forecasts and consider buffer accounts or credit facilities.

• Update processes: Train payroll and finance teams on new workflows.

• Communicate with employees: Explain the changes and benefits to staff.

• Test systems early: Don’t wait until June 2026 — start testing now.

How We Can Help

We’re here to make the transition smooth. We can:

• Assess your payroll systems

• Help you plan for compliance

• Forecast cash flow impacts

• Provide ongoing support to avoid last-minute stress.

If you’d like to discuss how Payday Super affects your business, contact ourselves or your BAS Agent/bookkeeper for assistance. Preparing now means peace of mind later.