What Is Payday Super and Why Employers Need to Know About It

From 1 July 2026, Australia is changing the way superannuation is paid. For employers, this means super contributions will need to be paid every payday instead of quarterly.

If you’re a small business owner, it’s important to understand what this change means for your business - including payroll, cash flow, and compliance.

What Is Payday Super?

Payday Super is exactly what it sounds like: super contributions are paid at the same time your employees are paid, rather than every three months.

The change is designed to help employees grow their super faster and reduce the risk of unpaid super. For employers, it means adjusting your payroll processes to make sure contributions are sent on time, every time.

Who Does This Affect?

All employers with employees are affected - large and small businesses alike.

If you currently pay super quarterly, you’ll need to switch to making payments each payday.

Why It Matters for Employers

While this change is great for employees, it does have implications for your business:

• Cash flow: Smaller businesses may need to manage their cash more carefully to make regular super payments.

• Payroll processes: Your payroll system may need updates to ensure super is calculated and sent every pay run.

• Compliance: Failing to pay super on time can result in penalties from the ATO.

Key Dates to Remember

• 1 July 2026: Payday Super comes into effect.

• 30 June 2026: The current Small Business Superannuation Clearing House (SBSCH) closes - businesses will need to choose a new clearing house or super payment method.

What You Can Do Now

Even though the change isn’t until July 2026, now is the time to start preparing:

1. Review your pay cycle: Will weekly or fortnightly pay work best for your cash flow?

2. Check your payroll system: Make sure it can handle super payments each payday.

3. Plan for cash flow: Start building a buffer to cover super obligations.

4. Stay informed: More information is coming about qualifying earnings and other technical rules — keeping up to date will make implementation easier.

Payday Super is coming, but with a little planning, your business can transition smoothly. Start thinking about it now — don’t wait until the last minute!