From 1 July 2026, employers will need to pay superannuation at the same time as wages. This is called the Payday Superannuation rule. Until now, most super was paid quarterly.
The goal is simple: employees get their super faster, and the system becomes fairer. For employers, it means reviewing payroll processes and preparing ahead of time.
What Payday Super Means For Employers
From July 2026, every time an employee is paid, their super must also be paid. Employers have seven business days after payday to make sure the money reaches the employee’s super fund. If payments are late, the ATO may apply a super guarantee charge (SGC).
The rules introduce Qualifying Earnings (QE). QE includes ordinary time earnings, salary sacrifice contributions, and other payments counted for super. In some cases, such as paying new employees or irregular pay runs, extra time may be allowed.
Understanding the Super Guarantee Charge (SGC)
If super payments are late, employers can face the updated SGC. This includes the unpaid super, interest for lost earnings, and administrative costs. Additional penalties may apply if the SGC remains unpaid.
The SGC is tax-deductible, but the current late payment offset will no longer apply from 1 July 2026.
Other Key Changes
The Small Business Superannuation Clearing House (SBSCH) will close to new users on 1 October 2025 and retire fully by 1 July 2026. Employers should switch to payroll software that supports faster and more accurate super payments.
Super funds must now process or return payments within three business days instead of twenty. The SuperStream standards will also improve, allowing faster payments and clearer error messages. Employers will also report qualifying earnings and super amounts through Single Touch Payroll (STP). This helps the ATO track payments quickly.
Preparing Your Business
Start by reviewing your payroll system. Make sure it can handle super payments every payday. Talk to your payroll software provider about updates and compliance features.
Next, ensure your finance and HR teams understand the new rules. Clear communication with employees about how super payments will work is also important.
Think about pay cycles. Each payrun will mean more administrative tasks. It may work for your business to look at fortnightly or monthly payments.
Cashflow is king. Ensure your cash flow is well-managed, including reviewing and improving the aging of your accounts receivable, so funds are available when super payments are due.
In Short
From 1 July 2026, super moves to a payday model. Employees get their super with each wage, and businesses must update payroll processes. This helps employees save faster but requires employers to prepare in advance.
Get Ready for Payday Super
Start preparing now. Review your payroll, check software updates, and make sure your business can comply from day one.
Contact our team to learn how to get your business ready for the change.