What is Payday Super and Why It Matters
Australia’s Payday Super reform changes the way super guarantee (SG) obligations are calculated and paid. From 1 July 2026, super payments must be made every payday rather than quarterly. It also marks the permanent closure of the Small Business Superannuation Clearing House (SBSCH). (community.ato.gov.au)
Key Changes Employers Must Know
| Area | Current Practice | New Requirement from 1 July 2026 |
|---|---|---|
| Payment frequency | Four times per year (quarterly due dates) | Each payday, with contributions reaching the super fund within 7 business days after each payday (community.ato.gov.au) |
| Use of SBSCH | Small businesses use the clearing house for SG payments | Permanently closed from 1 July 2026. Existing users must switch to alternative methods and download historical records before then. (ato.gov.au) |
| Eligibility for SBSCH | Businesses with 19 or fewer employees or under $10 million turnover | Same eligibility during the phase-out period; no new registrations after 1 October 2025 (ato.gov.au) |
Compliance Checklist: What Employers Should Do Now
- Review payroll software to ensure it supports SG payments every payday and report qualifying earnings accordingly. Existing tools may already have these features built-in. (community.ato.gov.au)
- Choose an alternative to the SBSCH by exploring commercial clearing houses, payroll providers, or built-in fund online services. (ato.gov.au)
- Download SBSCH records before 1 July 2026, especially transaction history and employee details, so you’ll have accessible proof for audits or queries. (ato.gov.au)
- Plan cash flow accordingly — paying super every payday requires more frequent funding. Adjust budgets to accommodate timing changes.
- Understand reporting changes: From 1 July, STP reporting must include year-to-date qualifying earnings, and super liability on a per-pay basis. (community.ato.gov.au)
Practical Example
Sarah owns a small café with five employees. She currently uses quarterly payments through the SBSCH. To comply:
- By October 2025, stop new registrations for SBSCH. Sarah already has access, so she still can use it until June 2026. (ato.gov.au)
- She ensures her payroll software is set to compute qualifying earnings and super liability per pay period.
- On each payday from 1 July 2026, Sarah’s super contributions must reach funds within 7 business days, not at end of quarter.
- She downloads all employee and payment records from the SBSCH by 30 June 2026. (ato.gov.au)
Penalties & Risks of Non-Compliance
- Late or missing payments may incur super guarantee charges, interest, and reporting issues.
- Relying on the SBSCH past closure means no access to transaction abilities or historical records.
- Misclassifying earnings or failing to report qualifying earnings may lead to liabilities under the reform.
Key Takeaways
- Action now steps: check payroll, transition from SBSCH, download records.
- From 1 July 2026, super must be paid every payday and records updated accordingly.
- Full compliance requires preparation across accounting, payroll, reporting and funding practices.
Adapting early gives time to smooth out workflows, avoid surprises, and ensure super obligations are met cleanly, saving time and cost in the long run.