What is payday super and what does it mean?

Payday Super is designed to ensure Australian employees receive their super in real time, helping to secure retirement savings and reduce the risk of unpaid or missing contributions. To get a perspective on how much super goes unpaid, the ATO estimates $6.25 billion in the most recent financial year alone. Pretty wild.

Business owners, we won’t sugarcoat it. Payday Super is going to have major administrative, resourcing and cash flow implications. How payroll, cash flow and compliance are managed will need to be front of mind as you plan for 2026 (and beyond). These changes could ripple across your broader operations and resourcing, so it’s worth taking a step back to see how Payday Super might affect your business as a whole. 

What’s changing with payday super? 

Updated as of 6 November 2025.

Super is due at time of payroll.

From 1 July 2026, super contributions will need to be paid when wages are paid whether your team is on a weekly, fortnightly or monthly pay cycle.

Super must reach employees within 7 days.

Payday Super payments must land in employee accounts within 7 days of payday. This is one of the most contentious bits of the legislation given the current super system affords employers 28 days from the end of each quarter to satisfy their obligations. 

Further, payment clearing houses can’t currently guarantee the date funds land in employee accounts, and online bank processing timeframes vary widely. 

These issues are yet to be addressed, but what we do know from the Treasurer is that the ATO appears to be willing to work with employers that are making the effort to do the right thing. 

“The ATO is consulting on its approach to compliance for the 12 months after the change starts. The ATO’s approach will differentiate between low and high-risk employers.

This approach will mean that employers who are making the effort to pay contributions in line with each pay cycle can fall into the low-risk category.” 

The SBSCH service closed from 1 July 2026.

To add to the uncertainty around clearing houses, from 1 July 2026 the ATO’s Small Business Superannuation Clearing House (SBSCH) will be closed. The SBSCH, which is currently only operating for existing users, is a free ATO service that lets employers make a single super payment, which is then distributed to each employee’s super fund. 

There is currently no further information, or front runner replacement being suggested. We will continue to update you as we hear news on this front. 

There will be penalties for late payments.

Like the current super system, if you underpay, miss or are late with a payday super payment, your business will be up for a raft of penalties and fines.

These can include daily interest fees, late or underpayment fines and additional charges levied to reflect the cost of enforcement.

Regardless of why payment is late, you’ll also need to submit a Superannuation Guarantee Charge Statement to the ATO, along with any monies owed.

I’m a business owner. What should I do about payday super?

Look at your payroll resourcing and systems – now.

Do you have the people, systems and processes in place to ensure super can be paid at the same time as wages? Consider capacity in your admin, finance and bookkeeping team, and any technology you’ll need to make this seamless. If you don’t have the support you need in this area, now is the perfect time to chat to an advisor and consider appointing an outsourced bookkeeper.

Start planning for cash flow impacts.

Moving from quarterly to frequent super payments will affect how money moves through your business. Now is the time to seriously look at how this might impact your working capital and household finances, and whether you need to adjust your cash flow strategy.

If you occasionally kick in personal funds to get your business through payroll or supplier payments, consider this your sign to get a handle on cashflow.

Ensure good governance.

Make sure your business has good governance processes in place that allow you to record, report and prove you’re meeting your superannuation obligations. Mistakes (even honest ones) will result in penalties and fines. 

Watch for technology and infrastructure updates.

The current clearing house system will need some major changes to ensure employers are able to easily comply with the Payday Super laws. So continue to keep your eyes peeled for new players to the market and for technology responses from digital service providers like Xero, MYOB and investment platforms.

Watch for further regulatory updates.

Although the legislation has now passed, there’s still more detail to come – particularly around how clearing houses and payment systems will operate. Staying up to date will help you avoid panic, stress and make for a smoother transition.

Payday Super is happening

What remains clear, is that business owners and those employing staff need to start getting prepared for Payday Super changes – now. The most logical next step is reaching out to your advisor, accountant or bookkeeper to understand what to do next.