Compliance
Compliance Checklist for ATO’s Payday Super and SG Reforms Effective July 2026
The upcoming Payday Super reforms will align super contributions with paydays and update employer obligations. Here’s what businesses, tax agents and funds must prepare between now and 1 July 2026.
By NomadicTax Research Team • 5-8 min read • November 22, 2025
## What's Changing: Payday Super & Super Guarantee (SG)
From **1 July 2026**, employers will be required to pay superannuation **at the same time as salary and wages**. That means SG contributions must arrive in the employee’s chosen super fund **within seven days of payday**. ([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/stakeholder-relationship-groups-key-messages/tax-profession-digital-implementation-group/tax-profession-digital-implementation-group-key-messages-5-march-2025?utm_source=openai)) The Small Business Superannuation Clearing House (SBSCH) will be retired from that date. Funds and employers must adapt to new systems and reporting obligations. ([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/stewardship-groups-key-messages/tax-practitioner-stewardship-group/tpsg-key-messages-22-august-2023?utm_source=openai))
## Key Compliance Actions Before July 2026
- **System upgrades:** Payroll systems need to track salary payment dates accurately, determine super due date, and ensure super payments clear in fund accounts within seven days.
- **Reporting changes:** SuperStream, Single Touch Payroll and other data-reporting systems will be updated. Employers should monitor ATO guidance and ensure reporting partners can handle new duties. ([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/stakeholder-relationship-groups-key-messages/tax-profession-digital-implementation-group/tax-profession-digital-implementation-group-key-messages-5-march-2025?utm_source=openai))
- **Cash flow planning:** More frequent super payments may affect employer cash flows. Plan for increased liquidity or operational adjustments to avoid late payments and associated SG charges.
- **Employee communication:** Update employees about their fund choices; delayed or non-receipt can cause disputes. Clarify the date the SG contributions are due and expected timing.
## Sample Timeline for Businesses
| Date | Task |
|---|---|
| Now – Dec 2025 | Audit payroll software; engage with tax/biz advisors to assess impact |
| Early 2026 | Test systems; pilot internal payroll cycles to ensure alignment |
| Mid-2026 (Q1-Q2) | Train payroll/admin staff; update policies; finalize reporting templates |
| 1 July 2026 | Full implementation; monitor for SG compliance thresholds |
## Penalties & Risks of Non-Compliance
- Late super contributions attract **Super Guarantee Charge (SGC)** including interest, administration fees and penalties.
- Non-compliance could trigger ATO audits under the super guarantee regime.
- Employers using obsolete clearing houses or ignoring data reporting upgrades risk operational disruption.
## Examples
- A company with fortnightly pay cycles must now calculate SG per payday, not by month. If pay is on 1st & 15th, contributions for that period must be paid and cleared within seven days of each payday.
- Funds need to reconcile incoming super payments more frequently and manage fund allocation under tighter schedules.
## Final Thoughts
Businesses and tax professionals must be ready. Start aligning financials, systems and communication from now until **mid-2026**. The cost of last-minute scrambling is far greater than investing in compliance readiness early.