Payday Super from 1 July 2026: What employers need to prepare now

What is Payday Super?

Payday Super is the new regime under which employers will be required to pay superannuation contributions each payday, instead of quarterly. The reform begins on 1 July 2026.(business.gov.au) Under Payday Super, super must reach employees’ super funds within 7 business days after payday.(community.ato.gov.au) It introduces new reporting obligations: employers will need to include qualifying earnings and super liability in each Single Touch Payroll (STP) report.(community.ato.gov.au) The Small Business Superannuation Clearing House (SBSCH) will permanently close from this date.(business.gov.au)

Who is affected and what to check

• All employers: regardless of size, you’ll need to adjust payroll and payment systems to meet payday frequency.
• Employers currently using SBSCH: start transitioning before 1 July 2026. Download your records; find a SuperStream-compliant alternative.(business.gov.au)

Steps to prepare

1. Review payroll systems and STP software

   • Check if your pay codes are correctly mapped to identify qualifying earnings.
   • Ensure STP software can handle reporting super liability every payday.
   • Test updates ahead of first pay run after 1 July.

2. Plan cash flow impacts

   • More frequent super payments may strain cash flow early on; forecast liability.

3. Choose alternative to SBSCH

   • Many payroll providers include SuperStream functionality.
   • Use SuperStream-compliant products; check the SuperStream Product Register.

4. Get employee communication ready

   • Inform your staff about what qualifies as earnings, when super reaches their fund, and how their reports will show up.

5. Understand legal and tax implications

   • Super contributions remain tax deductible. Late payments or SG charge may apply if you miss deadlines.(ato.gov.au)

Practical example

Imagine GreenTech Pty Ltd which pays staff on a fortnightly basis and currently pays super quarterly. Under Payday Super:

• Each pay run they must identify and calculate qualifying earnings per employee.
• After payday, within 7 business days, pay the calculated super contribution to staff funds.
• Also, report via STP: employee’s YTD qualifying earnings and super liability. If systems aren’t updated, they could miss or misassign funds, incurring penalties.

Key pitfalls and how to avoid them

• Mixing payment types: if employees get extra payments (overtime, bonuses), ensure those parts that are qualifying earnings are properly captured.
• Software or bank delays: payments and validation via SuperStream must work smoothly. Processing delays may cause you to miss due dates.
• Don’t rely on old behaviours: closing out SBSCH, eliminating quarterly contributions means legacy practices will no longer be acceptable.

Benefits for employers and employees

• Improved retirement savings outcomes with more regular contributions.
• Better transparency via regular statements and reporting.
• Employers with compliant systems may gaining reputational trust and reduced friction in audits.

Bottom line: Payday Super is a big compliance shift. Employers who act early—upgrade software, train payroll staff, plan cash flow—will avoid headaches and ensure smooth transition.