Changes Ahead: Payday Super is Coming!

Starting 1 July 2026, Australian businesses will experience a significant shift in how they manage their employees’ superannuation guarantee obligations.

The new Payday Super system will require employers to deposit superannuation payments guarantees within seven days of each payday, replacing the current quarterly contribution schedule. 
 

This change is designed to benefit employees by ensuring their super contributions are more promptly deposited. However, it also introduces new operational and financial considerations for businesses.  
 

What is Payday Super? 

Payday Super mandates that employers pay their employees’ superannuation guarantee alongside their regular salary and wages. This means super contributions will be made more frequently, aligning with each payroll cycle. 
 

Potential Changes to Anticipate: 

• More Frequent Payments: Super contributions will now occur with each payroll cycle, ensuring timely deposits into employees’ super funds. 

• New Compliance Timelines: Employers must ensure super is in employees’ accounts within seven calendar days of payday. This raises questions about how weekends and public holidays will be managed.  
   

Preparing for the Transition 

Businesses will need to consider the cash flow implications of these changes. Transitioning to monthly super contributions now, instead of quarterly, might be a strategic move to ease into the new system. 
 

Small businesses, in particular, should be vigilant about their payroll processes and this change, as the window to make superannuation payments will shorten significantly. Additionally, the Australian Taxation Office (ATO) will retire the Small Business Superannuation Clearing House on the same date that Payday Super comes into effect, due to advancements in payroll software. 

Current Status 

It’s important to note that this measure is not yet law. The Australian Government, Treasury, and the Australian Taxation Office (ATO) are still engaging with industry and stakeholders on these changes. 
 

We’re Here to Help 

We understand that these changes may seem daunting, but we’re here to support you every step of the way. Our team is dedicated to providing quality service and ensuring a smooth transition for your business. 
 

If you have any questions or need assistance, please don’t hesitate to contact us now. Together, we can navigate these changes and continue to build strong, supportive relationships. 
 

For more information, visit the ATO website or check out resources from Reckon and Australian Retirement Trust.