Payday Super Update: What Small Businesses Need to Know Before 1 July 2026

Written by: Melissa Cunliffe

Practical steps to get ready before 1 July 2026

Payday Super is one of the biggest changes to employer super obligations in decades and it’s coming soon. From 1 July 2026, employers will need to pay super every time they pay wages, not quarterly. That means cash flow, payroll systems, and onboarding processes will need to be ready well before the start date.

Young woman and her husband sitting at table with tablet and crumpled papers doing accounts for their small restaurant late in evening. Restaurant owners.

What is Payday Super?

Payday Super is a reform to Australia’s Superannuation Guarantee (SG) system. Under the current rules, most employers pay super quarterly. Under Payday Super, employers must calculate and pay super on each pay run (each payday).

The key change is timing: contributions must reach the employee’s super fund within seven business days of the pay date. There are limited exceptions, such as an extended timeframe for the first payment for a new employee.

When does Payday Super start?

Payday Super starts from 1 July 2026. From this date, employers will need to move from quarterly super payments to paying super in line with payroll cycles.

Preparing early is important, it gives you time to update systems, improve cash flow planning, and avoid compliance issues later.

How Payday Super changes employer obligations

Under Payday Super, employers will need to:

• Calculate super contributions each pay period

• Pay super on each payday

• Ensure payments reach employees’ funds within seven business days

• Maintain accurate records of payroll dates and super payment timing

These changes are designed to reduce unpaid and late super, improve transparency, and help employees grow their super more consistently over time.

Payday Super rules: current vs new payment timelines

Here’s a simple breakdown of how Payday Super compares to the current system:

Current rules (pre-1 July 2026):

• Super payments are made quarterly

• Payments must be made by the quarterly due date

• Late payments may trigger the Super Guarantee Charge (SGC)

• The Small Business Super Clearing House (SBSCH) is available and free

Payday Super rules (from 1 July 2026):

• Super payments must be made on each pay run / payday

• Contributions must reach the super fund within 7 business days

• A first payment for a new employee may have up to 20 business days

• SGC still applies, and late payment offsets won’t apply for post-1 July 2026 amounts

• SBSCH will close from 1 July 2026 (no new registrations since October 2025)

What Payday Super means for small business

Cash flow management becomes critical

Under the quarterly system, businesses could set super aside and pay it in bulk. With Payday Super, you’ll need to have enough cash available every pay cycle to cover both wages and super at the same time.

If your business typically relies on future income to cover quarterly super payments, you’ll need to adjust your cash flow approach, so you’re not caught short at payday.

Budgeting for super each pay cycle

A practical way to prepare is to treat super as part of your regular payroll cost. To do this:

• Review your average payroll per week, fortnight, or month

• Multiply that amount by the SG rate (12% in 2026)

• Build this amount into your budget and forecasts

This small adjustment can make a big difference and will help you avoid cash flow surprises when Payday Super begins.

Payroll and onboarding processes will need updating

Payday Super affects more than just payment timing. It also impacts payroll processing, onboarding, and compliance records.

To stay on track, businesses should make sure:

• Employee fund details are collected early (before the first payday)

• Payroll software can calculate and pay SG per pay run

• Your payment process ensures super reaches funds within seven business days

• Pay dates and payment confirmations are properly recorded

Preparing now: practical steps for Payday Super

Here are simple steps small businesses can take now to prepare for Payday Super:

1. Review your payroll systems

Check whether your payroll software can handle per-pay-cycle SG payments and the timing requirements under Payday Super. If not, it may be time to upgrade or switch systems.

2. Build a cash reserve buffer

Create a cash flow plan that lines up with your pay dates so you always have enough set aside for:

• Wages

• Super contributions

• PAYG withholding and other payroll-related obligations

3. Update onboarding processes

Make sure you collect all required employee details early, including their super fund information. Although the first payment for a new employee has a slightly longer timeframe, the goal is still to pay promptly and accurately from day one.

4. Speak with your accountant or payroll provider

Payday Super will change how payroll, cash flow, and compliance work together. Working with your accountant or payroll team early can help you get set up properly and avoid last-minute pressure.

5. Consider starting early

If your business is able to start paying super each pay run before 1 July 2026, it can be a great way to:

• Build confidence with the process

• Reduce compliance risks

• Smooth the transition when Payday Super becomes mandatory

What happens if Payday Super is paid late?

Paying super late can trigger the Super Guarantee Charge (SGC), which can include interest and administration penalties.

From 1 July 2026, late payments become even more risky because the timing is tied directly to each pay cycle and late payment offsets will no longer apply for amounts after the change.

In short: if Payday Super is late, it can quickly become expensive and time-consuming to fix.

Final takeaway: get ready for Payday Super now

Payday Super is a major compliance change, but it doesn’t need to be stressful. With the right payroll setup, stronger cash flow planning, and updated onboarding processes, small businesses can be ready well before 1 July 2026.

If you’d like help reviewing your payroll software, forecasting cash flow, or setting up a simple system to stay compliant, we’re here to help.

Book an appointment with our team today and we’ll help you get Payday Super-ready with confidence.

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Disclaimer   

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.   

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder  

Liability limited by a scheme approved under professional standards legislation. 

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