Compliance
Preparing for Payday Super: Navigating Super Guarantee Changes in 2026
Australia’s new Payday Super reform introduces a major shift in employer obligations—paying super contributions at the same time as salary wages from 1 July 2026. Here’s what businesses need to know now.
By NomadicTax Research Team • 5-8 min read • May 23, 2026
## 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](https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation?trk=public_post_comment-text&utm_source=openai))
## 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](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
- **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](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
- **1 July 2026**: Payday Super reform takes effect; employers are required to pay super at the same time as payroll. ([ato.gov.au](https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation?trk=public_post_comment-text&utm_source=openai))
## 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](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
- All employers will face the new requirement at 1 July 2026 for aligning SG payments with wage payments. ([ato.gov.au](https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/non-arm-s-length-income-changes-for-superannuation-funds?utm_source=openai))
## What Employers Must Do
1. **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](https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/super-funds-newsroom/updated-guidance-on-superstream-standard-and-fvs?utm_source=openai))
2. **Stop registering with SBSCH after 1 October 2025** – set up and test alternative payment paths. ([ato.gov.au](https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/how-to-pay-super/Small-Business-Superannuation-Clearing-House/?gh_jid=778583&utm_source=openai))
3. **Download and backup all existing super transaction records before 30 June 2026**, especially if using SBSCH. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
4. **Communicate with super funds** – verify that they accept electronic payments and conform to updated SuperStream and Fund Validation Service (FVS) standards. ([ato.gov.au](https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/super-funds-newsroom/updated-guidance-on-superstream-standard-and-fvs?utm_source=openai))
## Examples
- **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.
- **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](https://www.ato.gov.au/businesses-and-organisations/business-bulletins-newsroom/payday-super-consultation-continues?utm_source=openai))
- 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.**