We’re writing to make sure you’re aware of a significant change to how superannuation must be paid, starting 1 July 2026.
Currently, super guarantee (SG) contributions can be paid quarterly (within 28 days of the end of each quarter). Under the new Payday Super rules, you’ll be required to pay super at the same time as wages, with contributions reaching your employees’ super funds within 7 business days of each payday.
Below is a summary of what’s changing along with links for each key component providing an overview of how this may affect your business.
Cash flow
Instead of four quarterly payments, super will now be due every pay cycle. If you pay staff fortnightly, that’s 26 super payments per year instead of 4. We recommend reviewing your cash flow forecasts now so this doesn’t catch you off guard.
Payroll systems
Your payroll software will need to process and submit super with every pay run. We’d encourage you to check with your payroll provider that their system is Payday Super-ready, and to start testing the process before July.
Clearing house changes
If you currently use the ATO’s Small Business Superannuation Clearing House (SBSCH), please note that it will close on 1 July 2026 and is no longer accepting new registrations. You’ll need to transition to a commercial clearing house or an integrated payroll solution before then.
New penalties
The penalty framework is changing. Late payments will attract a Superannuation Guarantee Charge (SGC) that includes the shortfall amount, interest, and an administrative uplift of up to 60%. These penalties are assessed per payday, not per quarter.
Calculation changes
SG will be calculated on ‘qualifying earnings’ (QE) rather than ‘ordinary time earnings’ (OTE). The maximum contribution base is also moving from a quarterly to an annual threshold, which may affect how you handle high-income employees or one-off bonus payments.
The ATO has indicated it will take a supportive, education-first approach during the first 12 months, but only for employers who are genuinely making an effort to comply.
What we recommend you do now:
- Review your payroll system and confirm it supports payday-aligned super payments
- If you use the SBSCH, begin transitioning to an alternative solution
- Update your cash flow forecasts to account for more frequent super payments
- Audit your employee records to ensure super fund details and SG eligibility are up to date
Click here for our Payday Super Readiness Checklist:
We’re here to help you navigate this transition. If you’d like to discuss how Payday Super will affect your business specifically, or if you need help reviewing your payroll and cash flow arrangements, please don’t hesitate to get in touch.