19 February 2026
From 1 July 2026, you’ll need to pay your employees’ super at the same time as their wages, every pay run. With payday super, quarterly payments will no longer apply, representing a significant change to your payroll, cash flow and compliance processes.
This payday super fact sheet explains what payday superannuation is, what’s changing from 1 July 2026, what it means for your business, and the practical steps you should take now.
What is payday superannuation?
Payday superannuation changes when you pay your employees’ super. From 1 July 2026, you must pay super on your employees’ regular payday, at the same time as salary and wages. Contributions must reach the employee’s super fund within 7 business days. Super has always been part of your employees’ pay. Payday super simply requires you to pay it closer to when the work is performed.
Why has the government introduced payday super?
The shift to payday super addresses long-standing problems with delayed and unpaid super. Under the quarterly system, employees often wait months for contributions to reach their fund – and in some cases, they’re paid late or missed altogether. Kris Elliot, Director at AR & B Advisors, says that “paying super earlier means contributions are invested sooner, helping employees build stronger retirement balances over time”.
From a regulatory perspective, payday superannuation also improves transparency. By linking super payments to payroll through Single Touch Payroll, the ATO can identify late or missing contributions sooner, reduce non-compliance and deliver better outcomes for employees.
What’s changing from 1 July 2026?
From 1 July 2026:
- You pay super when you pay wages.
- Super funds receive payments within 7 business days.
- Your payroll system must be set up to calculate and report payday super accurately.
The most significant change is the timing of super payments. From 1 July 2026, employers must pay super on payday, and the employee’s super fund must receive that payment within 7 business days. The current quarterly payment deadlines will no longer apply.
Another important change affects how super is calculated. While the super guarantee rate remains at 12%, it will be based on a new measure – qualifying earnings (QE) – instead of ordinary time earnings (OTE) alone.
You will also report more information through Single Touch Payroll. From July 2026, you must report both qualifying earnings and super liability, giving the ATO near real-time visibility of your compliance.
What does payday super mean for business owners?
For many small to mid-sized businesses, the most immediate impact of payday super will be on cash flow. Quarterly super payments have historically allowed employers to manage cash timing more flexibly. Paying super with each pay run removes that buffer and will require more precise forecasting.
Kris explains, “Businesses will now need to treat super like PAYG withholding: a regular, non-negotiable cost.” While this may feel restrictive, super has always been an employee entitlement rather than a business asset. You may need to adjust budgets and cash flow planning to reflect super as a regular, pay-cycle expense rather than a quarterly one.
Your payroll processes will also need closer attention. If you already use modern payroll software such as Xero or MYOB and have automated super set up correctly, you are likely well placed. “Software and automation will really make this manageable – it won’t add hours to your pay run,” says Kris. If you rely on manual processes, spreadsheets, or workarounds, you face a higher risk of mistakes and late payments and should review your arrangements early.
Compliance risk will also increase under payday super. Late payments will trigger the super guarantee charge (SGC) much sooner than under the current system.
What should employers be doing now?
Although payday super doesn’t start until July 2026, we encourage employers to prepare well in advance. Preparing early gives you time to fix problems without pressure.
Key preparation steps:
1. Review and update payroll systems.
2. Transition away from the SBSCH if applicable.
3. Update cash flow forecasts and budgets.
Review and update payroll systems
Check that your payroll system can calculate super correctly, automate payments and report through Single Touch Payroll. If your current setup is manual or unreliable, now is the time to move to a more robust solution.
Transition away from the Small Business Superannuation Clearing House
Payday super for small businesses also means planning for the closure of the Small Business Superannuation Clearing House (SBSCH). From 1 July 2026, the service will no longer be available, so you’ll need to transition to payroll-based super payments well before the deadline.
Update cash flow forecasts and budgets
Finally, update your cash flow forecasts to reflect more frequent super payments. Treating super like PAYG withholding – a regular, non-negotiable obligation – will help businesses adjust smoothly.
How AR & B Advisors can support you
Payday superannuation affects how you run payroll, manage cash flow, and meet your compliance obligations. Getting ahead of the changes now reduces risk and avoids last-minute disruption.
AR & B Advisors works with business owners to review payroll systems, improve automation, plan cash flow, and manage compliance. To find out how AR & B can support you, take a look at our Business Advisory Bundles or speak with the team about preparing your business for payday super before July 2026.