The Federal Government has confirmed major changes to how and when employers must pay superannuation. 

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 reform, known as Payday Super, aims to ensure employees receive their superannuation contributions on time and to address the growing problem of unpaid super, which the government estimates cost Australian workers around $5.2 billion last year. 

The changes have been made through the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 which passed parliament on 4 November 2025 and are awaiting royal assent. 

Key features of the Payday Super reform 

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 

Employers will need to make super payments at the same time as wages or within seven days of payday. 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. 

Superannuation changes affecting small businesses 

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, now have several months to find a new solution. This may mean direct processing or finding another paid clearing house. 

How Payday Super changes will impact employers 

The Payday Super changes will have practical impacts on payroll, cash flow and compliance. 

• Payroll systems: Employers will need to ensure their payroll software can handle real-time super payments. Major platforms such as Xero, MYOB and Employment Hero are expected to update their systems before the 2026 start date. 
• Cash flow: Businesses will lose the current 3-month buffer before super is due, meaning closer cash flow management will be required. 
• Compliance: With enhanced ATO data visibility, any late or missed super payments will be automatically detected and trigger the Super Guarantee Charge; even if they are only a few days overdue. 

How can businesses prepare for Payday Super? 

To get ready for the 1 July 2026 start date, businesses should begin planning now. Depending on how the business currently processes superannuation, key steps you can take include: 

• Reviewing 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. 
• 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 well before July 2026. 
• 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 now to ease the transition and identify any system or process gaps. 

How Business Chamber Queensland can help

Business Chamber Queensland offers a range of services to help businesses navigate these changes, including: 

• Workplace relations advisory: Expert guidance on compliance with new superannuation obligations and payroll adjustments. 
• Training and resources: Access to webinars, toolkits, and practical guides on implementing Payday Super. 
• Advocacy and updates: Stay informed through regular updates, newsletters, and events focused on legislative changes. 
• Member helpline: Direct access to advisors who can answer questions and provide tailored advice for your business. 

Membership options range from essential support packages to comprehensive solutions for businesses looking to future-proof their operations. For more information, visit our memberships page or call 1300 731 988.