Payday Super: What Your Business Needs to Know
From 1 July 2026, superannuation guarantee contributions must be paid every pay cycle — not quarterly. Here’s how to prepare your business.
What is Payday Super?
Payday Super is a landmark reform to Australia’s superannuation system. Under the Treasury Laws Amendment (Payday Superannuation) Act 2025, employers will be required to pay Superannuation Guarantee (SG) contributions aligned with each pay cycle, rather than the current quarterly deadline.
This means that every time you pay your employees’ wages or salary, you must also process their super contribution — with funds required to reach the employee’s nominated super fund within 7 business days of the pay date.
The current SG rate is 12% of ordinary time earnings (OTE), and this percentage remains unchanged. What changes is the frequency and urgency of payment.
Key Dates & Timeline
| Date | What Happens |
|---|---|
| Now — June 2026 | Preparation period — review payroll systems, update processes, plan cash flow |
| 30 June 2026 | Small Business Superannuation Clearing House (SBSCH) closes permanently |
| 1 July 2026 | Payday Super commences — SG must be paid every pay cycle within 7 business days |
| 1 July 2026 | New STP reporting fields required (super liability and qualifying earnings amounts) |
| Ongoing | Late payment offsets no longer available — penalties apply for missed contributions |
What’s Changing: Current vs New Rules
| Aspect | Current Rules | From 1 July 2026 |
|---|---|---|
| Payment frequency | Quarterly | Every pay cycle |
| Payment deadline | 28 days after quarter end | 7 business days from pay date |
| New employee setup | 21 calendar days | 20 business days |
| Late payment offsets | Available (up to 12 months) | Eliminated |
| Penalty for shortfall | SG Charge (quarterly) | 25% penalty (50% if repeat within 24 months) |
| STP reporting | Current fields | New super liability + qualifying earnings fields |
Who’s Affected?
All employers in Australia who have SG obligations are impacted, regardless of business size. This includes:
- Small businesses with 1-19 employees
- Medium and large enterprises
- Businesses using the SBSCH (must transition by 30 June 2026)
- Employers with complex payroll arrangements
- Businesses with casual, part-time, or contract workers receiving super
Cash Flow Impact
The shift from quarterly to per-pay-cycle super contributions will have a meaningful impact on business cash flow:
- More frequent outflows: Super payments processed every pay run instead of quarterly
- Reduced cash buffer: No more holding contributions for up to 28 days after quarter end
- Tighter payment windows: Just 7 business days to ensure funds reach the employee’s fund
- No more offset safety net: Late payment offsets are being removed entirely
At LMS Advisory, we help you model the cash flow impact specific to your business. That’s our INSIGHTS tier in action.
How to Prepare: Your Payday Super Checklist
1. Review Your Payroll System
Confirm your payroll software can process SG contributions per pay cycle and supports new STP reporting fields.
2. Transition from SBSCH
Transition to an alternative clearing house or direct payment method before 30 June 2026.
3. Plan Your Cash Flow
Model the impact of per-pay-cycle super payments. Build a buffer for the transition period.
4. Update Onboarding
Collect new employee super fund details promptly. You have 20 business days under the new rules.
5. Test Compliance
Conduct a wage code review and transactional testing before July 2026.
6. Train Your Team
Update payroll and accounts team on new reporting requirements and payment timelines.
Latest Updates
April 2026 — The Treasury Laws Amendment (Payday Superannuation) Act 2025 has passed Parliament and is now law. The 1 July 2026 start date is confirmed.
October 2025 — The SBSCH closed to new users. Existing users retain access until 30 June 2026.
Updated regularly. Last reviewed: April 2026.
Resources
- ATO — Payday Super Hub
- Fair Work Ombudsman — Payday Super New Rules
- APRA — Payday Super Readiness
- ATO — Calculators and Tools
Is Your Business Ready for Payday Super?
From payroll system reviews to cash flow modelling, the LMS Advisory team is here to help you navigate this transition with confidence.
