What It Means for Employers
Significant changes are coming to how superannuation is paid. The government’s Payday Super reform is now law and will take effect from 1st July 2026. This means employers will be required to pay their employees’ superannuation at the same time as their salary and wages.
Business owners should start preparing now to ensure a smooth transition to Payday Super. Early action will help your business stay compliant, manage cash flow effectively, and avoid unnecessary pressure as the start date approaches.
What is Payday Super
Payday Super is a change to how employers pay superannuation. From 1st July 2026, employers will be required to pay super at the same time as wages.
The ATO has also introduced a draft Practical Compliance Guideline (PCG 2025/D5) outlining its approach to compliance during the first year of Payday Super.
The ATO intends to focus its compliance efforts on employers who fail to pay the minimum SG contributions and do not take prompt action to rectify any issues. Employers who make genuine efforts to comply and resolve issues quickly are less likely to face compliance action.
How It Will Work
- Super contributions must reach the fund within seven calendar days of payday.
- Payment frequency will align with payroll cycles.
What Small Businesses Can Do Now?
There are practical steps that can be taken now to prepare for July 1st:
- Review payroll cycles: Weekly pay will require weekly super payments, and monthly pay will require monthly payments.
- Check payroll software: Confirm that systems can manage more frequent payments or identify suitable alternatives.
- Update employee super details: Ensure fund information is accurate and active.
- Plan for cash flow: More frequent super payments will place greater demand on cash flow.
- Stay informed: Monitor updates from the ATO and ICB as the reform progresses.
Supporting Small Business
This reform represents one of the most significant payroll changes in recent years, and there is limited time to prepare. Bookkeepers and BAS Agents play a key role in helping small businesses understand what is coming and plan accordingly.
The best approach is to stay informed, start planning early, and help clients prepare for change.
