We are less than 4 months away from PayDay Super is your business ready for Pay Day Super?
I feel like I have been talking about this for months but I am not sure that Small Businesses are getting that there is more than just more frequent payments.
From 1 July 2026, Australia's superannuation system will shift to a new model known as Payday Super. This reform changes when and how employers must pay Superannuation Guarantee (SG) contributions - moving away from quarterly payments and aligning super with every pay run.
The change is designed to reduce unpaid super, improve retirement outcomes for workers, and give regulators real-time visibility over compliance through reporting to the Australian Taxation Office.
What Is Payday Super?
Under Payday Super:
- Super must be paid each time wages are paid, rather than quarterly.
- Super contributions must reach the employee's fund within 7 business days of payday.
- Employers must report earnings and super obligations via Single Touch Payroll (STP) every pay cycle.
Super effectively becomes part of the payroll process instead of a separate quarterly task. I have made the word REACH big for emphasis… because I don't think Small Businesses are hearing this… Some current clearing houses take more than 3 days to get the funds to the employees super funds after it has left the businesses bank… so If you actioned the payment 3 days after pay day you are suddenly at risk of being Non Compliant. And the new penalties are huge. Yes you read right the way late Super payments are penalized changes on 1/7/2026.
Why the System Is Changing
The government introduced Payday Super to:
✔ Reduce unpaid and late super
✔ Improve long-term retirement balances through earlier compounding
✔ Increase transparency for employees
✔ Strengthen enforcement through real-time reporting
Employees will be able to see their super paid much sooner, and compliance agencies will be able to identify missed or late payments far more quickly.
Key Changes Employers Need to Know
1. Payment Timing
Super must be paid on or very close to payday, not weeks later. Funds must receive the contribution within 7 business days of the wage payment.
2. New Earnings Base - Qualifying Earnings
Super will be calculated on Qualifying Earnings (QE), a new standardised definition of earnings used to determine SG liability. This replaces inconsistent interpretations of ordinary time earnings across systems.
3. Stronger STP Reporting
Employers must report qualifying earnings and SG obligations through STP every pay run, giving the ATO visibility of liabilities as they arise. So because STP was such a success, the ATO know when you are late with Super already they are just going to enforce compliance more.
4. Small Business Super Clearing House Is Closing
The government-run clearing house will close before Payday Super starts. Employers who rely on it will need:
- Payroll software with integrated super payments, or
- A private clearing house solution.
5. Tighter Penalties
Late or missing super payments will still trigger the Super Guarantee Charge but it now has four components and because payments are more frequent, errors will be identified faster.
Here is a comparison of New Verus Old
What This Means for Employers
- More frequent super payments (weekly, fortnightly or monthly instead of quarterly)
- Increased reliance on payroll software to automate calculations and payments
- Greater cash flow planning to ensure funds are available each pay run
- Higher compliance visibility for the ATO
This is not just a timing change - it is a structural shift in payroll processes. Do I have your attention yet? Are you / your payroll team / software ready?
If you haven't had a decent discussion on PayDay Super with your Payroll Professional maybe the checklist below can start the conversation.
Employer Payday Super Readiness Checklist
Use this checklist to assess whether your business is on track.
Payroll & Systems
☐ Confirm your payroll software supports Payday Super
☐ Ensure it can calculate super using Qualifying Earnings
☐ Check whether your software includes integrated super payments or requires a clearing house (you will need to know what the timeframe from your bank TO employee funds is).
Super Payment Process
☐ Identify how super will be paid every pay run
☐ Confirm payments can reach funds within 7 business days
☐ Replace use of the Small Business Super Clearing House
☐ Set up bank accounts or payment workflows for more frequent payments
Employee Data
☐ Review employee fund details for accuracy
☐ Ensure stapled fund rules are followed for new employees
☐ Update onboarding processes to collect correct super information upfront
Cash Flow Planning
☐ Model the impact of paying super weekly/fortnightly instead of quarterly
☐ Adjust budgeting and cash reserves accordingly
☐ Discuss timing impacts with your bookkeeper or accountant
Training & Governance
☐ Train payroll staff on the new rules
☐ Update payroll policies and procedures
☐ Build super payment checks into each pay cycle
☐ Schedule internal audits before July 2026
What Employees Will Notice
For employees, Payday Super means:
✔ Super paid much sooner
✔ Faster detection of underpayments
✔ Improved retirement outcomes over time
✔ Greater trust that super is being paid correctly
This reform benefits workers most - but requires preparation by employers.
Final Thoughts
Payday Super represents one of the biggest payroll compliance changes in decades:
- Super moves from quarterly to per-pay-run
- Reporting becomes real time
- Payment failures become visible faster
- Software and processes must evolve
Businesses that prepare early will avoid rushed system changes, cash flow shocks and compliance risks.
The best time to start preparing is now - well before 1 July 2026.
