Compliance
Understanding Payday Super: What Employers Must Do Before 1 July 2026
Australia’s Payday Super reforms change when super must be paid and how employers must report. Here’s a breakdown of obligations, compliance tips, and practical examples for your business.
By NomadicTax Research Team • 5-8 min read • April 16, 2026
## What is Payday Super?
From **1 July 2026**, Australia introduces “Payday Super” — a reform aligning superannuation guarantee (SG) contributions with each pay-period. Employers will need to meet contributions obligations within **seven days** of payday, rather than adhering to the old deadlines.([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
## Key Legal Reforms
- **SG on paydays**: Contributions must be paid within seven days after each pay run.([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
- **Retirement of Small Business Superannuation Clearing House (SBSCH)**: Closing from 1 July 2026. Employers must use alternate services.([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
- **Mandatory reporting changes**: Ordinary times earnings and total super liability must be reported through Single Touch Payroll (STP); infrastructure updates to comply.([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
## What Employers Should Do: Actionable Steps
- **Audit your payroll systems** now to see if they can capture qualifying earnings, super liability, and process super payments by the new deadline.
- **Engage with super funds** and service providers to ensure that payment channels meet the new requirements (e.g., payments via the New Payments Platform if made available).([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
- **Update employee onboarding forms**: Employers will soon be able to request stapled super fund details before or after offering a standard choice form. These rules are also operating by 1 July 2026.([rsm.global](https://www.rsm.global/australia/tax-insights/ges-update/global-employer-tax-update-april-2026?utm_source=openai))
- **Train staff / advisors**: HR, payroll teams and agents need to understand the changes to avoid late payments which may attract penalties.
## Compliance Risks & Penalties
Failure to meet Payday Super obligations can trigger:
- SG charge liabilities
- Penalties for late payments and reporting mismatches
- Undue costs associated with adjusting payroll systems retroactively
### Example for a Medium Business 1. Weekly pay run on Mondays → super contributions due by the next Monday.
2. If using SBSCH today, need to identify a new clearing house or process directly.
3. Payroll system must produce reports showing ordinary times earnings (OTE) and super liability per pay period.
4. Document the changes in internal policies and communicate to staff.
## Best Practices
- Trial runs: simulate July payroll in advance to test system readiness.
- Map cash flow: paying super every pay period may affect when cash must be set aside.
- Review contracts / employment agreements: ensure they define OTE appropriately and align with legislative definitions.
## Conclusion
Payday Super is a major shift for how superannuation works in Australia. Employers have just a few months to adapt. With careful planning, clear systems, and proactive compliance, the transition can be smooth — and costly missteps can be avoided.