If you’re an employer, it’s time to start preparing for upcoming changes to how and when you must pay superannuation as part of the Federal Government’s Payday Super reforms.

What’s changing

From 1 July 2026, businesses will be legally required to pay employees’ superannuation at the same time as wages or salaries, or within seven calendar days of payday. This is a change from the current law, which allows for up to three months later.

The reform introduces the term ‘qualifying earnings’. Qualifying earnings means the wages payable to an employee on their pay cycle day. It’ll be used to calculate how much superannuation guarantee employers should pay. Qualifying earnings is made up of:

• An employee’s Ordinary Time Earnings (OTE)
• Amounts of OTE that have been used as part of a salary sacrifice arrangement for super contributions
• Other amounts which are currently included in an employee’s salary or wages for superannuation guarantee

The ATO will also have real-time visibility through Single Touch Payroll reporting, allowing it to detect late or missed payments more quickly. The Super Guarantee Charge will be redesigned to automatically calculate employer liabilities for any late or missing contributions. This means employers won’t need to manually allocate periods or calculate penalties. The new Super Guarantee Charge will include the unpaid super amount, interest to compensate employees for lost earnings and administrative costs. Stronger penalties will apply for repeat or prolonged non-payment. The ATO also plans to consult with employers during the first year of implementation to support a smooth transition.

As part of these changes, the ATO’s Small Business Superannuation Clearing House will close from 1 July 2026. Small businesses that rely on the Small Business Superannuation Clearing House to process super payments will need to find a new solution. This may mean direct processing or finding another paid clearing house.

What you can do to prepare

The Payday Super changes will have practical impacts on payroll, cash flow, and compliance. Depending on how you currently process superannuation in your business, steps you can take include:

• Reviewing your payroll systems: Ensure your payroll software can process super contributions per pay cycle and integrate with Single Touch Payroll. Automating this process will reduce errors and compliance risk. Major platforms such as Xero, MYOB and Employment Hero are expected to update their systems before the 2026 start date.
• Planning for cash flow impacts: Conduct a cash flow analysis and consider strategies such as maintaining a larger cash reserve or adjusting payment cycles to ensure liquidity.
• Updating employee records: Confirm super fund details for all employees and eligible contractors to avoid rejected contributions.
• Transitioning from the ATO Clearing House: If you currently use the Small Business Superannuation Clearing House, explore alternative clearing houses or payroll solutions and test them before July 2026.
• Considering compliance impacts: With enhanced ATO data visibility, any late or missed super payments will be automatically detected and will trigger the Super Guarantee Charge, even if they are only a few days overdue.
• Communicating with staff: Explain the changes and benefits of Payday Super to employees to build trust and transparency.
• Starting early: Consider moving to more frequent super payments sooner to ease the transition and identify any system or process gaps.

How we can help

We’re here to help you make informed decisions so you can be confident your business is meeting requirements and building a productive and thriving team. We offer a range of services to help businesses navigate these changes, including:

• Expert, practical guidance on compliance with new superannuation obligations and payroll adjustments.
• Access to webinars, toolkits, and practical guides on implementing Payday Super.
• Regular updates, newsletters, and events focused on legislative changes.

Contact our HR consulting team

• Call: 1800 902 137
• Email: [email protected]

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