Summary
From 1 July 2026, employers will need to pay superannuation on payday or within seven days, replacing the current quarterly system. The change aims to reduce unpaid super and give employees more timely access to their retirement savings. Businesses may need to update payroll systems, review cash flow and prepare for the closure of the ATO’s Small Business Superannuation Clearing House.
The Federal Government has passed legislation to introduce Payday Super, requiring super to be paid at the same time as wages. Here’s a quick overview of the key points most likely to affect local businesses.
Key Changes at a Glance
- Super must be paid each pay cycle or within seven days of payday
- New definition of ‘qualifying earnings’ to calculate super
- ATO will have real-time visibility via Single Touch Payroll
- Automatic Super Guarantee Charge calculations for late or missed payments
- Stronger penalties for repeated non-payment
Small Business Impacts
- The ATO’s Small Business Superannuation Clearing House closes on 1 July 2026
- Many businesses will need to select and test an alternative clearing house
- Quarterly cash flow buffers will no longer apply
How to Prepare
- Check your payroll system can handle super payments every pay cycle
- Review cash flow and adjust budgets
- Update employee super details to avoid errors
- Communicate with staff early so they understand the change
These reforms will require operational adjustments, but planning ahead will make the transition much smoother.
