From 1 July 2026, the way you pay your employees’ super is changing. Instead of making quarterly super payments to your employees’ funds, contributions will essentially need to be paid at the same time as salary and wages.

‘Payday Super’ marks a significant change for employers. To make sure your business isn’t caught out, make sure you’ve taken the following readiness steps, in line with ATO guidance.

Understand the new requirements

Under the new regime, super guarantee payments must reach your employees’ super funds within seven business days of payday, though longer deadlines apply in some cases, such as for new employees. The amount of contribution is calculated as 12% of an employee’s ‘qualifying earnings’ – a new term that incorporates and expands on the previous concept of ordinary time earnings.

If contributions are not made on time, in full and to the correct fund, the super guarantee charge (SGC) may apply.

Plan your transition

The ATO recommends that employers do the work now to plan and prepare for Payday Super. This includes:

• Deciding when, exactly, your business will move to Payday Super (noting early adoption is perfectly fine).
• Reviewing your cash flow position, to make sure your business can cope with a shift away from quarterly to ‘real-time’ super payments.
• Checking your current payroll and business processes, such as confirming that super fund details for all eligible employees are up-to-date and complete.

Lock in plans

Once your business has determined when it will start using Payday Super, the next step is to make sure all relevant systems are ready for the change. That includes the payroll software you use, as well as any clearing houses or super fund portals you may use to make super guarantee contributions.

For any businesses that use the Small Business Superannuation Clearing House (SBSCH), remember that it will close permanently from 1 July 2026 as part of the Payday Super reforms.

Finally, take the time to troubleshoot any potential issues that might arise once Payday Super is live. For example, your business may need to implement a process quickly to correct any errors that might arise when paying employees’ super contributions.

Remember, from 1 July 2026…

…Payday Super is mandatory.

Any businesses that do not adapt to the new rules and continue to pay super quarterly run the risk of being on the receiving end of compliance action by the ATO.

If your business needs help preparing for Payday Super, feel free to reach out to a member of our team. We can walk you through the requirements of the new legislation and troubleshoot any potential pitfalls well ahead of 1 July.