Payday Super is Coming: What Businesses Should Do Now to Prepare 

From 1 July 2026, employers across Australia will be required to pay superannuation contributions on a per-pay basis under the new Payday Super rules. This is a significant change from the current quarterly Superannuation Guarantee (SG) system. 

While the legislation is not yet law, our Tax and Business Advisory team has prepared the following tips to help clients and businesses get ready.

What Payday Super Means for Employers 

• Contributions must be made within seven (7) business days of each pay cycle. 

• Payment obligations apply to all employees, including casual staff and certain contractors. More on contractors and super here. 

• Employers must report super contributions through Single Touch Payroll (STP). 

• Contributions are calculated on Qualifying Earnings, which generally align with Ordinary Time Earnings. 

Key Steps to Help SMEs Prepare 

1. Review Payroll Systems and Automate Where Possible

Ensure your payroll software can process super contributions per pay cycle and integrate with STP. Automation reduces errors, ensures timely payments, and simplifies compliance reporting. 

2. Plan for Cash Flow Impacts

Payday Super increases the frequency of contributions, which can affect cash flow. Conduct a cash flow analysis and consider strategies such as maintaining a larger cash reserve or reviewing payment cycles to ensure liquidity. 

3. Update Employee and Contractor Onboarding

Verify that super fund details for all employees and eligible contractors are captured correctly. Accurate information reduces rejected contributions and compliance risk. 

Employees who change funds will also have the extended usual period timeframe (20 business days) for the first pay cycle. 

4. Review Pay Codes and Classification Settings

Check that all pay codes are configured correctly for SG purposes, including those applicable to casuals or contractors under the extended definition of “employee.” 

5. Transition from the Small Business Superannuation Clearing House (SBSCH)

The ATO’s SBSCH will be decommissioned from 1 July 2026. Businesses should explore alternative payroll systems or clearing houses and test new systems well in advance. 

Note: Employer is responsible for complying with the 7 days even if the clearing house causes late receipt by the fund. A contribution is deemed to be ‘received’ when it is in the fund’s bank account.  

6. Communicate with Your Workforce

Explain the changes and benefits of Payday Super to employees. Clear communication builds trust and ensures staff understand how their super contributions will be handled.

7. New employees 

Employers with a new employee have 20 business days to make the super contribution in the first pay period (extended usual period).  

Risks of Non-Compliance  

Late or missed super contributions can have significant financial consequences. Employers may be liable for the Super Guarantee Charge (SGC), which covers unpaid contributions, interest, and administrative penalties, and is not tax-deductible. 

With Payday Super increasing contribution frequency, the ATO will have greater visibility of payments, making compliance more important than ever. 

How Morrows Can Help 

Our Tax and Business advisory team can help you prepare for Pay Day Super changes: 

• Streamline payroll processes and reduce errors 

• Manage cash flow effectively to avoid penalties and compliance costs 

• Ensure your business is ready for a smooth transition to Payday Super 

Start preparing now to transition confidently to the new regime. Please get in touch with your Morrows Tax and Business advisor to discuss how we can support your business with this transition.