What is Payday Super?
Payday Super is a reform that requires employers to pay superannuation guarantee (SG) contributions at the same time they pay salary and wages, rather than quarterly. This change is part of a broader move to ensure employees receive their retirement savings more promptly and reduce gaps in super contributions. (ato.gov.au)
Key Dates and Milestones
- 1 October 2025: New registrations to the Small Business Superannuation Clearing House (SBSCH) are closed. Only existing users can continue through to mid-2026. (ato.gov.au)
- 30 June 2026 (11:59 pm AEST): SBSCH service will close permanently. All employers must have alternative methods in place by this deadline. (ato.gov.au)
- 1 July 2026: Payday Super reform takes effect; employers are required to pay super at the same time as payroll. (ato.gov.au)
Who Is Affected
- Employers with 19 or fewer employees or turnover under $10 million currently using SBSCH will need to move to alternate super payment methods. (ato.gov.au)
- All employers will face the new requirement at 1 July 2026 for aligning SG payments with wage payments. (ato.gov.au)
What Employers Must Do
- Review current payroll software and processes – ensure they can support more frequent super payments and align with SuperStream and Single Touch Payroll (STP) updates. (ato.gov.au)
- Stop registering with SBSCH after 1 October 2025 – set up and test alternative payment paths. (ato.gov.au)
- Download and backup all existing super transaction records before 30 June 2026, especially if using SBSCH. (ato.gov.au)
- Communicate with super funds – verify that they accept electronic payments and conform to updated SuperStream and Fund Validation Service (FVS) standards. (ato.gov.au)
Examples
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Small café with 15 employees: currently paying super every quarter via SBSCH. From 1 October 2025, they can’t register new details via SBSCH and must switch to their payroll software’s direct super payment function or a commercial clearing house.
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Large business using custom payroll system: needs to ensure their system supports ‘in-pay’ SG payments from 1 July 2026, adjusts payroll runs and funds transfers to match wages runs.
Risks and Penalties
- Late super payments or misaligned contributions may trigger the Super Guarantee Charge (SGC), with revised calculations under the reform to account for delays. (ato.gov.au)
- Using an outdated or non-compliant payment method after the SBSCH shutdown may result in missed obligations or noncompliance.
Take-away Actions Now
- Audit current processes and tools: payroll, clearing house or fund payment systems.
- Ensure super funds and payment methods are aligned with SuperStream and FVS updates.
- Update policies and workflow to ensure SG payments are triggered automatically alongside wage payments from 1 July 2026.
By getting ahead now, businesses—especially small employers—can avoid surprises, errors and penalties when the reform takes hold.