From 1 July 2026, employers will need to pay superannuation at the same time as wages. This reform, known as Payday Super, became law on 4 November 2025 and aims to reduce Australia’s $6.25 billion in unpaid super, especially for casual and part time staff.

The Key Change

Super guarantee contributions must reach employees’ funds within seven business days of payday. Late payments will trigger the Superannuation Guarantee Charge, which includes the missed super plus interest and an administration fee. These amounts will usually be deductible, but penalties for late SGC payments will not.

The ATO will also retire the Small Business Superannuation Clearing House from 1 July 2026, so employers will need another payment option. The Government expects the earlier payment cycle to add about $7,700 to the average worker’s retirement balance.

Why It Helps Employers

The tighter timing may feel like more work, but it often makes payroll easier.

• Less admin because super is handled during payroll rather than quarterly.
• Lower compliance risk because issues surface sooner.
• More trust from staff who can see their super contributions on time.
• Smoother cash flow from smaller, frequent payments.

The ATO plans to take an education focused approach in the first year. Employers who pay on time will be treated as low risk.

How to Prepare

You’ve got time before the rules kick in, but preparing early will make the transition to Payday Super far smoother. 

Reviewing your payroll software, aligning your pay cycles with the seven-business-day payment window, and planning for more frequent super payments now can help reduce compliance pressure later. 

We can work with you and your payroll team, or liaise directly with your external payroll provider, to ensure systems and processes are all in place well before July 2026.

The Takeaway

Payday Super is a chance to simplify payroll, reduce compliance pressure, and build trust with staff. With the rules starting in July 2026, now is a good time to prepare. If you want help with the transition, our team can guide you through the steps.