Payday Super is Coming: Here’s What You Need to Know

From 1 July 2026, superannuation changes in a big way. If you employ anyone, including yourself as a director, this affects you.

What’s changing

Right now, you pay super quarterly, up to three months after the end of each quarter. From July, you’ll have seven business days after each pay run. That’s it.
I’ll be straight with you. This isn’t a change any of us asked for, and the timing isn’t ideal for business owners already juggling a hundred things. But the legislation
passed Parliament in November 2025, and it’s now law.

We don’t get a say in whether it happens. All we can control is how well we prepare.This change affects 900,000 businesses across Australia. The government sees it as a worker protection measure, addressing the billions in unpaid super sitting in employer bank accounts instead of employee super funds. From your perspective, it means a fundamental shift in how you manage cash flow.

What this means for your business

Pay fortnightly? Super’s due within seven business days of each pay run. Pay monthly? Seven business days after month end. The quarterly buffer you’ve been using to manage cash flow for years is gone.

Your payroll system will need to calculate super at 12% of “Qualifying Earnings” (that’s the new term replacing ordinary time earnings, though for most businesses it
covers the same ground: base pay plus allowances and bonuses). Every time you run payroll through Single Touch Payroll, you’ll report both the earnings and the super you owe. For new team members starting with you, there’s a slightly longer window of around 20 business days while you sort their fund details, but after that it drops back to seven business days.

Why you need to care

Miss the deadline and you’ll cop a Superannuation Guarantee Charge. This includes the unpaid super amount, interest that compounds daily, and administrative penalties that can add up to 60% of the shortfall depending on your history. If you get fund choice wrong, the penalties can be severe.

And here’s the thing that concerns me most for business owners: these penalties aren’t tax deductible. They come straight off your bottom line. The ATO has signalled they’ll take a reasonable approach in the first year if you’re genuinely trying but slip up. But “transitional relief” doesn’t mean “free pass.” You still
need your systems ready.

What to do now (you’ve got 5 months)

1. Check your payroll software

Most major platforms (Xero, MYOB, QuickBooks, KeyPay) have confirmed they’ll be ready. But check with your provider that your current plan includes the Payday Super functionality. Some may require upgrades.

2. Update your employee records

Make sure you have current, validated super fund details for everyone. Stapled super fund queries to the ATO should become part of your onboarding process if they aren’t already.

3. Talk to us about cash flow

This is the big one. If you currently pay $30,000 in super per quarter, you’ll now be paying roughly the same amount, just spread across multiple smaller payments
throughout the quarter. Same total amount, different rhythm entirely. Some businesses will find this easier to manage; others will need to adjust.

Our suggestion: start building a buffer now. Even putting aside a small amount each week between now and July will help take the edge off that first month when the new rhythm hits.

4. Review your payroll timing

Consider whether your current pay cycle makes sense. Some businesses are looking at whether monthly payroll (and therefore monthly super) might be simpler to manage than fortnightly.