Compliance
Payroll Super Reforms: What Businesses Need to Know Ahead of 1 July 2026
Australia’s Payday Super reform requires employers to sync super payments with payroll, report additional fields, and upgrade systems—businesses must act now to avoid compliance risks.
By NomadicTax Research Team • 5-8 min read • March 4, 2026
## Overview of the Payday Super Reform
The government plans to overhaul how superannuation guarantee (SG) contributions are handled:
- Employers will be **required to pay super at the same time as salary and wages**, beginning **1 July 2026**. ([ato.gov.au](https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation?utm_source=openai))
- The Small Business Superannuation Clearing House (SBSCH) will be decommissioned from 1 July 2026. Employers using it must transition to commercial clearing services. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/payday-super-consultation-continues?utm_source=openai))
- Technical reporting changes to Single Touch Payroll (STP): employers will report **ordinary time earnings (OTE)** and **super liability** lines. SuperStream payment standards will adjust to include **New Payments Platform (NPP)** capabilities. ([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-29-november-2024?utm_source=openai))
## Compliance Risks and Challenges
- Employers who delay updating payroll systems may face **SG charge penalties** if payments are late or contributions do not land within 7 calendar days of payday. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/payday-super-consultation-continues?utm_source=openai))
- Transitioning from SBSCH to commercial options may entail additional costs and system changes.
- Digital Service Providers (DSPs) and software vendors must redesign systems to include new fields and support NPP payment methods. Delay in implementation could lead to errors or misreporting.
## Preparing Now: Actionable Insights for Businesses and Employers
1. **Audit your current payroll and super systems** to map whether payments align with paydays and identify gaps in super contribution timing.
2. Work with software providers and DSPs to ensure compliance with updated STP reporting lines and payment methods (e.g., integrating NPP).
3. Develop a transition strategy from SBSCH: evaluate commercial clearing houses and ensure staff are trained.
4. Update internal policies to document behaviour around making good errors early and rectifying mistakes to mitigate SG charge risk.
## Example Scenario
- A small employer pays salaries fortnightly, but super contributions currently go weekly. Under the new rules, all super contributions must arrive in the fund **within 7 calendar days** of payday each payroll period. Late payments—even by a few days—could attract SG charges.
- If payroll software doesn’t support the new STP OTE and super liability fields or the NPP payment method, manual workaround sources may lead to errors like split forms or mismatched payments.
**Takeaway:** Payday Super is more than a technical change—it affects timing, systems, and liabilities. Employers who prepare early, invest in systems, and maintain good processes will not only avoid penalties but also benefit from smoother compliance.