At Trekk Advisory, we're all about keeping your business on track while staying compliant with the latest regulations. Enter payday super—a major shakeup to how employers manage superannuation payments. If you're running a business, this is a change you need to know about, and we’ve got the details sorted for you.
What is payday super?
From 1 July 2026, employers will need to pay the superannuation guarantee (SG) at the same time as they pay their employees’ wages. No more quarterly payments; super will now be due on payday.
Why the change? Well, it’s designed to help close the $3.4 billion gap between what employees should be getting in super and what’s actually being paid. This faster payment schedule also means better outcomes for your employees. For instance, a 25-year-old on a median income could be 1.5% better off at retirement with these more frequent super payments.
This was announced in the 2023-24 federal budget, but it’s not law just yet. However, getting your ducks in a row early is always a good idea, especially for something this significant.
How does payday super work?
Under the new system, your SG payments will be due within seven days of your employees’ payday. So, every time you pay your team, you’ll need to ensure their super hits their fund within that timeframe.
There are a couple of exceptions to this rule—new employees get a slight grace period of two weeks, and irregular or small payments outside the regular pay cycle may have different deadlines. But for most businesses, it means staying on top of superannuation compliance every pay period.
Since many businesses already use single touch payroll (STP), the transition should be relatively smooth, as payday super will integrate with existing electronic systems. Some adjustments to how ordinary time earnings (OTE) data is collected might be needed, but we’re here to guide you through those.
What will this mean for your business?
The big impact will likely be on cashflow. You’re used to holding back around 12% of your payroll until the end of the quarter—this will change. Instead of that buffer, you'll be paying SG as soon as your employees get paid, which could require some careful cashflow management.
On the upside, this shift limits the risks of unpaid super spiralling out of control, especially if a business becomes insolvent. With payday super, the damage is contained since the SG payments go out immediately, ensuring that employees aren’t left short.
Miss a payment? Here’s what happens
We get it—things happen. But under the new system, missing an SG payment deadline comes with serious consequences. Currently, if you miss a payment, you’re hit with the super guarantee charge (SGC), which includes the unpaid amount, 10% interest, and an admin fee. Plus, none of it is tax-deductible.
With payday super, the penalties are even steeper. If you fall behind, you could face the following:
- Outstanding SG shortfall: Calculated based on OTE, not total wages.
- Notional earnings: Daily interest on the unpaid amount.
- Administrative uplift: Up to 60% of the SG shortfall.
- General interest charge: Extra interest on top of everything else.
- SG charge penalty: Up to 50% of the unpaid SG charge if it’s not settled within 28 days.
It’s clear—the government is serious about protecting employees' entitlements, and falling behind on SG payments could have severe financial consequences for businesses.
Trekk Advisory: your partner in super compliance
Navigating these changes doesn’t have to be stressful. At Trekk Advisory, we specialise in more than just crunching numbers. We’re here to help you plan, manage your employer superannuation obligations, and ensure your business is ready for payday super.
Whether you need to adjust your STP reporting, revise your cashflow strategy, or simply understand the new rules, our team is here to guide you every step of the way. We believe in innovation for better outcomes, so let’s make sure your business is prepared and compliant ahead of the July 2026 deadline.
Final thoughts
The move to payday super is significant, but it’s not something you need to face alone. At Trekk Advisory, we’ve got your back.
It's essential for businesses to stay on top of employee superannuation obligations to avoid hefty superannuation penalties. Missing or delaying SG contributions can lead to a superannuation shortfall, which may result in further penalties and interest charges. With the latest superannuation law changes and federal budget superannuation changes, including the upcoming payday super reform, staying compliant is more critical than ever. Make sure your business is prepared and up to date with all superannuation requirements to protect both your employees and your bottom line.
Let us help you navigate these changes, so you can focus on what you do best—growing your business.
