Payday Super: What employers need to know
From 1 July 2026, a major change to Australia’s superannuation system takes effect.
Known as Payday Super, the reform changes when employers must pay Superannuation Guarantee (SG) contributions — moving from quarterly payments to payment in line with each pay cycle.
What is changing?
Under Payday Super, employers will be required to ensure SG contributions are paid and received by the employee’s super fund within seven business days of payday. This applies regardless of whether wages are paid weekly, fortnightly, or monthly.
While the SG rate remains unchanged, the timing obligation is significantly tighter and removes the flexibility many businesses currently rely on.
Why this matters for employers
The intent is to improve retirement outcomes by ensuring super is paid more frequently and closer to when wages are earned. For employers, however, it introduces new operational and compliance considerations — particularly around payroll processes, cash flow management, and system capability.
Preparing early
Employers must plan ahead so they are ready to implement the changes. Most businesses will need to review:
Payroll and superannuation clearing house arrangements
Super fund payment processes and cut-off times
Single Touch Payroll (STP) data accuracy and alignment
Internal controls to avoid late or missed payments
While penalties are not the focus of this reform, failure to meet the new payment timeframes may expose employers to Super Guarantee Charge consequences, making preparation essential.
What should you do now?
Businesses that prepare early will avoid last-minute disruption. We recommend reviewing your current payroll and super processes well ahead of 1 July 2026.
Our firm will be supporting clients through this transition — from system readiness and process design through to implementation and ongoing compliance. Please contact us to discuss how Payday Super will affect your business and the steps you should be taking now.