‘Payday Super’ Starts 1 July 2026

19 Mar 2026

By Sam Cahill, Senior Associate – Australian Business Lawyers & Advisors

The Federal Government’s ‘Payday Super’ reforms will take effect on 1 July 2026.

This means that, from 1 July 2026, employers will be required to make superannuation contributions on behalf of employees each pay cycle – instead of at the end of each quarter.

Employers will need to ensure that superannuation contributions are received and allocated by the relevant superannuation funds within 7 business days of the relevant pay day.

In effect, this means that super will need to be paid at the same time as wages.

In the case of a first-time payment to a particular fund (eg, for a new employee or an employee who changes funds during employment), the employer will be allowed 20 business days for the payment to be received and allocated by the relevant fund.

The tight timeframes under the new rules will mean that contribution payments will need to be transmitted to superannuation funds promptly – and with the information required for the payment to be allocated to the employee’s account within the fund.

Employers will need to update their payment systems to be ready to comply with the new laws. For example, employers may need to obtain new software that allows for integrated payroll and superannuation processing. Employers may need to contact external payroll providers to ensure they are ready for the new requirements on 1 July.

Employers who currently use the Australian Taxation Office’s (ATO) Small Business Superannuation Clearing House (SBSCH) will need to find a new method for making superannuation payments. This is because the SBSCH will be closing on 30 June 2026. Employers currently using the SBSCH can engage a commercial clearing house as an alternative to the ATO facility.

Employers who fail to make superannuation contributions ‘on time’ will be liable for a superannuation guarantee charge, which will include interest that compounds daily at the general interest charge rate. Employers may also be liable for penalties.

The ATO has published a guidance document (PCG 2026/1) that explains the ATO’s approach to enforcing the new laws during the first 12 months from 1 July 2026. The document indicates that, during this initial period, the ATO will be focusing on ‘high risk’ employers (ie, employers that are not complying with the pre-July superannuation rules) and ‘medium risk’ employers (ie, employers that are not attempting to comply with the new laws).

For more information on how to comply with the Payday Super requirements, we recommend employers speak with their tax accountant and/or payroll services provider.

Should this article raise any questions about paying your workers correctly, use your Workplace Advice Line calls as a BNSW member to review award classifications or arrange a compliance review.