Payday Super: What Employers Need to Know (Effective from 1 July 2026)
From 1 July 2026, Australian employers will need to change the way they pay superannuation — moving from quarterly payments to making super contributions on each payday.
This reform, known as Payday Super, is a major shift in superannuation compliance and is designed to improve outcomes for both employers and employees.
What Is Payday Super?
Under the Payday Super rules:
Employers must calculate Super Guarantee (SG) contributions each pay cycle (e.g., weekly, fortnightly, monthly) based on qualifying earnings.
Super contributions must be paid at the same time as salaries or wages.
The contributions must arrive in the employee’s super fund within 7 business days of payday (with limited exceptions, such as for new employees).
This change modernises Australia’s super system and gives employees more regular visibility and access to their super payments. It also aligns super payments more closely with how wages are paid.
Why the Change?
The Australian Taxation Office (ATO) introduced Payday Super to:
Reduce unpaid and underpaid super;
Help employees see super contributions in real time;
Improve compliance and reporting transparency; and
Ensure contributions are invested sooner, potentially improving retirement outcomes for workers.
What Employers Must Do Before 1 July 2026
To prepare for Payday Super, employers should:
Review payroll and accounting systems — ensure they can calculate SG for every pay cycle accurately.
Check payment processes — contributions must reach funds quickly (generally within 7 days).
Update administrative workflows, including Single Touch Payroll (STP) reporting, to match the new timing requirements.
Consider cashflow implications — more frequent super payments mean planning cashflow differently compared with quarterly remittance.
What Happens If You Don’t Comply?
Failing to meet Payday Super requirements can lead to:
Super Guarantee Charge (SGC) liabilities;
Interest and administrative penalties; and
Increased scrutiny from the ATO.
Final Thoughts
The Payday Super reform represents a significant shift for Australian employers. While it introduces more frequent payments and tighter timelines, it also streamlines super contributions and can help businesses stay compliant with superannuation obligations. If your systems or processes aren’t ready, now is the time to act.
Strategem Financial Services can help guide your business through these changes — from evaluating payroll readiness to managing cashflow impacts and ensuring regulatory compliance.
We are here to help
If you need further advice, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants & Advisors are available to support you.
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If you have any concerns or general questions, or would like to learn more about superannuation and tax planning, book a chat today.
