Payday Super Appointments

Preparing for Payday Super:

What Employers Need to Know

A major change to how Australian businesses manage and pay superannuation is on the horizon. To help you stay compliant and ahead of the curve, we've broken down exactly what you need to know about the new system, known as Payday super.

What is Payday Super?

Currently, most employers pay superannuation on a quarterly basis. However, starting 1 July 2026, employers must pay their employees' superannuation guarantee (SG) contributions at the exact same time as their salary or wages.


The goal of this change is to ensure super is paid more frequently so it reaches your employees' super funds sooner.

What This Means for Your Business

This is a significant shift in payroll processing. Here are the key new requirements you will need to meet:

Pay cycle contributions: SG contributions must be paid on every single payday, rather than bundled at the end of the quarter.


The 7-day rule: Your SG contributions must generally reach your employees' super funds within 7 business days after the payday.


"Qualifying Earnings": Super will be calculated using a new concept called "qualifying earnings". This includes an employee's ordinary time earnings (OTE), as well as certain types of paid leave, allowances, bonuses, and lump sum payments.


STP Reporting: You will be required to report these qualifying earnings and superannuation liabilities via your Single Touch Payroll (STP) software.


Clearing House Changes: If your business currently uses the ATO Small Business Superannuation Clearing House (SBSCH), you must transition to an alternative provider before 1 July 2026. The SBSCH will permanently cease operating from that date


How to Start Preparing

Payday super is a major change, but with proper planning, the transition can be completely smooth. We recommend taking the following steps early:

Review your cash flow: Understand how paying super more frequently will impact your cash flow and update your forecasting and budgeting accordingly.


Check your software: Confirm that your payroll software will be updated and ready to handle Payday super calculations and reporting.


Audit employee details: Make sure all employee super fund details, account numbers, and unique superannuation identifiers are perfectly accurate. Incorrect details may cause payments to be rejected, leading to late payment penalties.

Need Help Navigating the Transition?

If you are uncertain about how to shift from quarterly to payday payments, or if you want to review how this will affect your cash flow, we best accountant in Sydney is here to help