What is changing for businesses from 1 July 2026
Australia is introducing Payday Super, meaning employers must pay superannuation contributions at each pay run and ensure those payments reach employee super funds within 7 business days. (business.gov.au) Also, the Small Business Superannuation Clearing House (SBSCH) is closing permanently, so employers using it need to transition to alternate providers. (business.gov.au)
Alongside these super reforms, the government is reintroducing loss carry back for eligible companies: businesses that incur losses can offset them against profits of the past two income years to obtain tax refunds, boosting cash flow. (business.gov.au)
How to prepare your business infrastructure
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Payroll systems: Review and ensure your payroll software can handle superannuation contributions per pay period and support the reporting of “qualifying earnings.” (community.ato.gov.au)
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Cash flow planning: More frequent outflow from each payday requires tighter budgeting; also, loss carry back may improve cash flow if your business is seasonal or has volatile profits.
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Accounting and tax accounting: Maintain accurate records of losses and profits in prior years; consult with your adviser to compute eligibility and ensure your returns and lodgements are up to date.
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Super fund administration: Move away from the SBSCH and ensure you’re using a compliant method like SuperStream, and that you can meet fund timelines. ⸺ check whether your staff/enrolment and payment matching processes are ready.
Practical examples
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Example 1 – A retailer with unexpected loss in FY 2025-26: Using loss carry back, the retailer can apply that loss to profits from FY 2023-24 and FY 2024-25 to claim a tax refund, improving its cash situation.
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Example 2 – A small business still using SBSCH: Must choose another super clearing house solution—download records now to avoid losing access and ensure payments are made each pay run starting 1 July 2026.
Compliance risks & costs
Failure to comply with Payday Super may lead to:
- late or unpaid super guarantee charges,
- penalties and interest if contributions don’t reach funds within 7 days,
- potential audits or liability for inaccurate reporting in Single Touch Payroll (STP).
Actionable checklist
- Confirm payroll cycles & payday definitions in your business.
- Update payroll software or engage a provider supporting per-payroll super.
- Assess prior years’ profit/loss records; prepare loss carry back claims where feasible.
- Schedule time with tax adviser to model impact on tax obligations, especially for cash flow.
Summary
For businesses, 1 July 2026 marks a turning point. Since obligations and opportunities both shift dramatically—especially superannuation timing and loss offset rules—proactive planning and system updates now can reduce surprises, penalties, and lost benefits.