Payday Super: What’s Changing and What You Need to Know   

From 1 July 2026, the way employers pay superannuation will change significantly. While you may have heard the term Payday Super, many business owners are still unsure what it means or how it will affect their payroll and cash flow. 

For many businesses, this change is less about learning new rules and more about changing when super is paid and how payroll processes are structured. Understanding this early gives you time to plan and avoid disruption. 

What is Payday Super?

From 1 July 2026, employers will be required to pay superannuation at the same time as wages. 

This means: 

• No more monthly or quarterly super payments 
• Super is paid every pay run 
• Late or delayed super becomes much easier to detect by regulatory bodies, such as the ATO 

Super will move from being a periodic obligation to one that is fully integrated into payroll. This changes when super leaves your bank account, not just how it is calculated. 

The change is being introduced by the Australian Taxation Office to improve compliance and reduce unpaid super across the system. 

When does this start? 

📅 1 July 2026 

While that date may feel some way off, businesses will need time to review systems, processes, and cash flow to ensure they’re ready. 

Who does this affect? 

This change applies to all employers, regardless of: 

• Business size 
• Number of employees 
• How often you run payroll 

If you employ staff or engage contractors who are deemed to be employees for Superannuation purposes, this applies to you. There are no exemptions based on business size or structure. 

What’s happening to the ATO Clearing House? 

As part of this change, the ATO Small Business Superannuation Clearing House (SBSCH) will be closed. 

If you currently rely on the SBSCH: 

• You will need to move to a commercial clearing house 
• Leaving this too late may result in payroll disruption or non-compliance 

If this applies to your business, this should be factored into your transition planning well before July 2026.  

This transition should be planned, not rushed. 

What if I currently process Super through my accounting software?

Most accounting software currently facilitates the payment of superannuation either quarterly or monthly as a standard part of its existing setup and workflow.  Most of the products currently also allow superannuation to be paid more frequently if required.  

While we expect that the accounting software providers will release more updates around the transition to Payday Super between now and the end of the financial year, this should not preclude you from starting to make the required workflow changes now.  

What will your new process look like? 

Under Payday Super, payroll becomes a single, continuous flow: 

1. Payroll is processed 
2. Wages are paid 
3. Super is paid at the same time 

Manual or delayed super processes will no longer work under Payday Super. 

Why we recommend moving early (January–March 2026) 

Although Payday Super doesn’t legally start until 1 July 2026, transitioning earlier is strongly recommended, 

While not mandatory, moving between January and March 2026 means: 

• You avoid EOFY pressure 
• You have time to adjust cash flow 
• Processes can be tested calmly 
• Any issues are resolved well before compliance deadlines 

This is about reducing risk and maintaining payroll continuity, not scrambling at the last minute. 

What happens if you don’t comply? 

From July 2026: 

• Super paid late or incorrectly will trigger penalties 
• Superannuation Guarantee Charge (SGC) will apply 
• ATO visibility increases significantly under Payday Super 

This is a compliance requirement, not an optional change. 

What should you be doing now? 

You don’t need to overhaul everything immediately. The priority now is to understand your current position. A sensible starting point is to: 

• Review how payroll and super are currently processed 
• Identify manual steps or timing delays 
• Understand whether your systems are fit for Payday Super 
• Consider how more frequent super payments will affect cash flow 

Early planning reduces risk and avoids rushed changes closer to July 2026. 

Need help?

If you’re unsure how Payday Super will affect your business, getting clarity early can make the transition far smoother. Whether you want help reviewing your current setup or planning the changes ahead, you can contact us and we can chat through how we can support you.

Additional Resources

Australian Taxation Office - PCG 2026/1 - Payday Super - first year ATO compliance approach