Compliance
Compliance Alert: Payday Super Receives Royal Assent — What Employers Must Prepare For
‘Payday Super’ is now law following royal assent—employers should understand new superannuation guarantee timelines, reporting requirements, and implications for payroll systems.
By NomadicTax Research Team • 5-8 min read • November 22, 2025
## What Is Payday Super?
Payday Super is an Australian legislative measure that changes how the **Superannuation Guarantee (SG)** operates. Rather than employers having until a quarterly due date to make contributions, SG contributions will need to be paid by employers **within seven days of each payday** when they are received by employers’ payroll systems. This helps ensure employees get paid super in line with their actual wage payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Whats-new?utm_source=openai))
## Effective Date and Legislative Status
- **Royal Assent received**: Payday Super is now law. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Whats-new?utm_source=openai))
- **When it takes full effect**: The law begins on **1 July 2026**. From that date, employers will need to meet the strict timelines and administrative standards set under Payday Super. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Whats-new?utm_source=openai))
## Compliance Requirements for Employers - Key Changes
| Area | Old Regime | Payday Super Obligations |
|------|------------|-----------------------------|
| Payment deadline | Employers had until quarterly due dates to pay SG contributions | SG contributions must be received by employees’ super funds **within 7 days of each payday** ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Whats-new?utm_source=openai)) |
| Reporting | Employers used existing super/time-based reporting schedules | Mandatory reporting through updated **Single Touch Payroll (STP)** systems — new fields for total super liability and ordinary time earnings will be required ([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/stewardship-groups-key-messages/private-groups-stewardship-group/private-groups-stewardship-group-key-messages-19-march-2025?utm_source=openai)) |
| Small Business Clearing Mechanism | The Small Business Superannuation Clearing House (SBSCH) facilitated some contributions | The SBSCH will be **retired** from 1 July 2026 — businesses will need to transition to new clearing house services or methods of payment ([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/stewardship-groups-key-messages/private-groups-stewardship-group/private-groups-stewardship-group-key-messages-19-march-2025?utm_source=openai)) |
## Action Steps for Employers
1. **Audit payroll and pay period alignment**: Ensure your pay cycle (weekly, fortnightly, monthly) is aligned with payroll systems that can calculate super amounts and send payments within seven days.
2. **Update payroll and accounting software**: Systems will need to support the new STP data fields (ordinary time earnings, total super liability) to comply with reporting requirements. Start testing earlier rather than later.
3. **Train HR and payroll staff**: Make sure everyone involved understands the timelines and consequences for late or missed payments. Internal controls are essential.
4. **Budget for cash flow impacts**: Moving from quarterly to payday-based contributions may tighten cash flow for some businesses. Financial planning should reflect this earlier outflow of funds.
5. **Communicate with super funds**: Employers should confirm how their super funds accept remittances, payment method updates, and whether they need to alter existing arrangements — especially given the upcoming retirement of SBSCH.
## Examples
- A weekly-paid employee: Salary paid every Friday means SG for that salary must be paid to the nominated super fund by **the following Friday**, within 7 days. Under old rules, employer might have had until the end of quarter (September etc.).
- A business currently using SBSCH to contribute may need to move to another verified clearing house or solution, or interact directly with super funds, ensuring fund compatibility.
## Implications and Risks
- **Penalties and compliance risk**: Missing the 7-day deadline or reporting incorrectly under STP could result in legal penalties or audit risk.
- **Behavioral change**: Employers used to quarterly contributions will need to manage **ongoing administrative burden** more frequently.
- **Cash flow and timing stresses**: For small businesses or those paying salaries irregularly, this shift could cause tight periods unless cash flow is modelled carefully.
## Conclusion
Payday Super law represents one of the most significant shifts in employer superannuation obligations in recent years. With the law now passed and an effective date of **1 July 2026**, businesses have time to prepare — but **proactive compliance planning** over the next several months is essential to avoid surprises. Employers should treat this as a sprint toward operational readiness, updating systems, cash flows, and reporting well ahead of time.