The Payday Super Change: What Is It?
As of 1 July 2026, Australian employers must shift from making superannuation guarantee payments quarterly to paying super each pay run. This policy is known as “Payday Super.” (business.gov.au)
Under Payday Super:
- Super contributions must be based on qualifying earnings, including ordinary time earnings and some contractor labour. (community.ato.gov.au)
- Payments must reach employees’ super funds within 7 business days after payday, with some exceptions. (community.ato.gov.au)
- The Small Business Superannuation Clearing House (SBSCH) will close permanently on 1 July 2026. Employers using it must transition now. (business.gov.au)
Why It Matters
- It improves retirement outcomes—it ensures super payments are timely and reduce chances of missed or late payments. (business.gov.au)
- For businesses, it means increased frequency of payments and more administrative oversight. Payroll systems may need updates. Cashflow may be impacted.
What Employers Should Do Now
- Review payroll schedules to align pay runs and super payments. If you pay weekly, fortnightly, or monthly, ensure systems can handle super calculations per pay period.
- Update reporting systems especially with Single Touch Payroll (STP): new reporting requirements include YTD qualifying earnings and super liabilities for each employee. (community.ato.gov.au)
- Transition off the SBSCH: download final records, set up or confirm alternative clearing house arrangements. (business.gov.au)
- Assess cashflow impact: more regular super payments mean surges in outgoing amounts across more pay runs. Plan for this.
Example Scenario
Small café business: Previously paid staff fortnightly with quarterly super payments of $6,000 aggregate in last quarter. Under Payday Super, after each fortnightly pay run (say $1,500 super), the business must pay super within 7 business days. Over a 13-pay period year, this breaks the lump quarterly sums into smaller regular flows—helpful for employees, but shifting cash management.
Compliance Risks and Best Practices
- Avoid late payments—super guarantee charge consequences apply.
- Maintain accurate payroll records: ensure qualifying earnings are correctly calculated.
- Make sure super payments reach the fund within 7 business days—some providers or fund systems may delay; you’re responsible.
- Stay aware of the final quarterly payment due for the prior period (for June 2026 quarter) and ensure that’s made while starting Payday Super.
Understanding Payday Super now gives businesses time to adjust operations and avoid penalties. It’s a structural compliance shift worth planning for carefully.