Payday Super is now law and will apply from 1 July 2026. This reform changes how and when employers must pay Superannuation Guarantee contributions, moving super from a quarterly obligation to every pay cycle.

If you employ staff, this is more than an administrative update. The new seven business day deadline, closure of the Small Business Super Clearing House, and strengthened compliance rules mean businesses need to review payroll systems and cash flow planning well before the start date.

What Is Payday Super?

Under the new rules, employers must pay employees’ super at the same time as salary and wages.

Currently, SG contributions must be paid at least quarterly. From 1 July 2026, super will be aligned with each pay cycle.

If you run:

• Weekly payroll, super must be paid weekly

• Fortnightly payroll, super must be paid fortnightly

• Monthly payroll, super must be paid monthly

The reform is being administered by the Australian Taxation Office (ATO).

Refer to ATO: About Payday Super for more information and factsheets.

The Critical 7 Business Day Rule

One of the most important changes is timing.

Super contributions must be received by the employee’s super fund within seven business days of payday.

It is not enough to process the payment on payday. The contribution must actually arrive in the fund within that timeframe.

If it does not, the employer will be liable for the Superannuation Guarantee Charge (SGC).

This makes payroll timing, bank processing, and clearing house efficiency far more important than under the current quarterly system.

For detailed example please visit at ATO: Payment deadlines for Payday Super

The Super Guarantee Charge Has Been Strengthened

The SG charge has been redesigned to support the Payday Super regime.

Late payments are expected to trigger faster compliance action, and the ATO will have greater visibility through Single Touch Payroll reporting.

In short, there will be less flexibility for late or missed payments.

ATO Compliance Approach in the First Year

The ATO has released draft guidance outlining how it intends to approach compliance during the first 12 months of Payday Super.

The ATO will differentiate between:

• Employers making genuine efforts to comply

• Employers who fail to update systems or repeatedly miss deadlines

Businesses that proactively adjust their processes and demonstrate reasonable efforts are likely to be treated as lower risk.

Those who ignore the changes may face earlier intervention.

Please visit Payday Super – first year ATO compliance approach for the practical compliance guidelines

The Small Business Super Clearing House Is Closing

This is a major operational issue.

The ATO’s Small Business Super Clearing House will permanently close on 1 July 2026.

If you are currently using this service, you must transition to an alternative solution before that date.

Employers should review:

• Existing payroll software

• Commercial clearing houses

• Super fund payment options

Leaving this until mid-2026 will create unnecessary risk.

Visit ATO for resouces on How to transition from the Small Business Superannuation Clearing House.

Practical Steps to Prepare Now

The ATO has encouraged employers to begin preparing early. Practical steps include:

1.Start Paying Super More Frequently

You do not need to wait until 1 July 2026. Transitioning early can help smooth the adjustment.

 2. Check Employee Super Fund Details

Rejected contributions will create compliance risk under the seven-day rule. Ensure all employee details are correct.

 3. Review Payroll Systems

Confirm your payroll software can process and transmit super payments every pay cycle.

 4. Plan Your Exit from SBSCH

If you use the Small Business Super Clearing House, transition to a replacement provider well before June 2026.

 5., Strengthen Internal Governance

Good payroll governance, clear responsibilities, and documented processes will reduce risk under the new system.

Payday Super is now law. From 1 July 2026, super will no longer be a quarterly compliance task but part of every payroll cycle, with strict timing requirements and a seven business day deadline. If you would like help reviewing your payroll systems or planning for the transition, contact us.