Payday Super Is Coming: What Employers Should Do Before 1 July 2026

From 1 July 2026, a significant change to how superannuation is paid: Payday Super. Payday Super will require employers to pay superannuation into an employee’s nominated fund at the same time their salary or wage is paid.

Many businesses make super contributions on a quarterly basis—if you’re one of these businesses, this will mean you’ll need to make changes to your business to comply.

What is Payday Super?

Under the legislation, employers will be required to pay Super Guarantee (SG) at effectively the same time that employees are paid.

This means:

• Super is processed on every pay cycle
• Contributions must reach the employee’s fund within 7 business days of payday

To put it in context, if a business is running weekly payroll, they could face up to 52 super payments in a year. It’s not just an administrative change, but an operational and compliance one.

Payday Super is a bigger shift than it seems

Payday Super may sound straightforward, but there are two flow-on changes that might catch business owners off guard.

1. Qualifying Earnings
Super will no longer be calculated using Ordinary Time Earnings (OTE). Instead, it will be based on Qualifying Earnings (QE).

At a high level, QE includes:

• Ordinary earnings
• Paid leave
• Commissions
• Certain bonuses and allowances
• Salary sacrifice amounts that would otherwise be salary and wages
• Some contractor payments where the contractor is paid mainly for their labour

QE is broader than the earnings base that many employers currently use.

For detailed guidance on what is included and excluded, refer to the ATO resource here.

2. The end of the Small Business Super Clearing House (SBSCH)
If you currently rely on SBSCH, you’ll need to transition. The service will close permanently on 1 July 2026, with access ending on 30 June 2026.

This closure means that you’ll need an alternative clearing house or payroll solution. The ATO recommends planning your final SBSCH contribution early in 2026 to allow time to transition and test new systems.

Read the ATO resource on how to transition from the SBSCH here.

What the Payday Super change means for your business

This change is an operational, financial, and compliance-driven one.

You can expect:

• More frequent super payments that happen at every pay cycle
• Cash flow pressure if not planned for properly
• Greater reliance on payroll accuracy
• Faster resolution of errors or rejected contributions

While it’s often positioned as a payroll or financial change, the accountability ultimately still rests on the employer’s shoulders.

What employers should be doing now

With the first quarter of 2026 ending, there’s only one more quarter until Payday Super comes into effect.

We recommend that businesses do the following:

1. Speak with your payroll provider. Confirm system readiness and implementation timelines.
2. Review your cash flow strategy. With super leaving your account more frequently, it’s worth reviewing how this will impact cash flow, and your business overall.
3. Audit employee data. Ensure super fund details are accurate and up to date before 1 July comes around.
4. Plan your SBSCH transition (if applicable). While it closes permanently on 30 June 2026, don’t leave this to the last minute.

Communicating the changes with your team

Don’t overlook the impact this will have on your people. While it’s an administrative change on the surface, the people-first approach is to communicate what’s happening with your team.

What to communicate with your team:

• What Payday Super is
• That you’re aware of the changes, and that you’re preparing for compliance
• Super will be paid on payday moving forward

Does HR have a role in the Payday Super changes?

As an HR provider, we don’t manage payroll, super processing, or system implementation.

What we can support you with is communication with your team. It’s best practice to be transparent and let your team know what’s changing and when.

Our team can also help you understand your obligations in plain terms, as well as identify any risks before they become compliance issues.

Get in touch with us here.