What Is Payday Super?
Payday Super refers to the upcoming reform in Australia which requires employers to pay superannuation guarantee (SG) contributions on every payday, rather than quarterly. It is part of broader measures to increase compliance and timeliness of super payments. (ato.gov.au)
Key Changes for Employers and SMSFs
- The Small Business Superannuation Clearing House (SBSCH) will be permanently closed from 1 July 2026. Employers currently using the SBSCH must switch to alternative methods well beforehand. (ato.gov.au)
- Employers will have 7 business days after payday to ensure contributions are received by the super fund, and super funds must have systems like Fund Validation Service (FVS) Submit ready to receive new message formats. (softwaredevelopers.ato.gov.au)
- SMSF (Self-Managed Super Fund) directors paying themselves contributions will still be able to transfer from company bank accounts to SMSF bank accounts, using the exception currently known as “SuperStream excepted”, as confirmed by ATO in recent guidance. (community.ato.gov.au)
- Employers must also observe the Maximum Super Contribution Base (MSCB) which, under the new annual framework starting 1 July 2026, limits contributions subject to SG to a base of $270,830 for deeming Ordinary Time Earnings/Qualifying Earnings. (community.ato.gov.au)
Example Scenarios
- Small employer using SBSCH: Your business has fewer than 20 employees and uses SBSCH to submit super contributions quarterly. From 1 July you must adopt a commercial clearing house or use payroll software that supports the new method. Download SBSCH records by 30 June. (ato.gov.au)
- Director of company/SMSF paying self: Even under Payday Super, the exception for “SuperStream excepted” payments from your company to SMSF remains intact. Ensure you keep records and maintain bank-to-bank transfers. (community.ato.gov.au)
- Employee with high bonuses: Suppose total remuneration including bonuses and base salary crosses the MSCB; SG contributions are capped accordingly. Employers must track cumulative payments. Missing the cap could lead to overpayments or errors. (community.ato.gov.au)
How to Prepare Now (Actionable Steps)
- Update payroll vendors/software to handle FVS Submit (2026) versions, as well as being able to generate and validate MVR entries. (softwaredevelopers.ato.gov.au)
- Identify which super funds you service and whether they are opt-in for NPP (New Payments Platform) for contributions and rollovers. Ensure bank account readiness. (softwaredevelopers.ato.gov.au)
- Map all pay schedules, especially for employees with irregular pay or bonuses, to ensure you’re not breaching MSCB or missing due deadlines.
- Educate your finance team on new requirements for employer obligations under Payday Super to avoid penalties or rejected payments.
Failure to comply can lead to late payment charges, super guarantee charge (SGC), and reputational risk. Being ready sets you apart.