Managing payroll is already a balancing act for business owners - paying staff correctly, staying compliant, and keeping cash flow steady. From 1 July 2026, that balancing act changes again with the introduction of Payday Super, a major shift in how employers must handle superannuation payments.
Payday Super became law on 4 November 2025. The aim is clear: close Australia’s $6.25 billion unpaid super gap and improve retirement outcomes for employees, particularly casual and part-time workers who are often most affected by delayed contributions.
Earlier and more frequent super payments will reshape how employers manage payroll and compliance from 1 July 2026.
From 1 July 2026, employers will need to:
Pay super at the same time as wages, instead of quarterly.
Ensure SG contributions reach funds within seven business days of payday.
Avoid triggering the Superannuation Guarantee Charge (SGC), which applies to late payments and includes interest and admin fees, with further penalties for delays.
Understand that SGC will generally be deductible, although penalties for late payment of SGC will not be.
Transition away from the Small Business Superannuation Clearing House (SBSCH), which will close on 1 July 2026.
Recognise that more frequent super payments could boost workers’ retirement balances by around $7,700, while also highlighting the need for stronger payroll processes and better cash flow management, which you can explore further in our Cash Flow and Forecasting insights.
These changes aim to create a more transparent, timely, and reliable superannuation system for employers and employees alike.
Although the change may feel like more administration at first, it can streamline processes and reduce compliance risk in the long run. Employers can benefit from:
Less admin - Paying super alongside wages removes the quarterly scramble.
Lower compliance risks - ATO data-matching improves accuracy and helps identify issues early.
Stronger employee trust - Staff can see their super contributions in real time, improving transparency and retention.
Smoother cash flow - Smaller, more frequent super payments can be easier to manage than larger quarterly payments.
The ATO has indicated it will take a risk-based approach in the first year of implementation, focusing on education and support to help employers adapt. Businesses that pay on time are likely to be treated as low risk, with fewer compliance interventions.
These changes also highlight the value of having strong internal systems and well-structured business processes in place, an area we regularly support through our broader planning and advisory services.
With more than six months before Payday Super begins, the smartest move is to prepare early. Here’s how to set your business up for a smooth transition.
Most modern platforms like Xero, MYOB, and QuickBooks already support payday-aligned super. Confirm your settings and check whether any upgrades, add-ons, or new integrations are needed.
Document how often you pay staff and calculate the seven-day window for each cycle. This will help you identify any operational pinch points.
Make sure your payroll team understands the upcoming requirements. The ATO has online resources and webinars to help employers prepare.
Consider trialing more frequent super payments now. Making smaller, regular payments can reduce pressure and help you adjust your cash flow rhythms. You can find more cash flow planning guidance here.
Set up a monthly check to confirm super payments have cleared successfully. Stay across ATO updates as final guidance is released.
If you outsource payroll, speak with your provider soon to confirm their readiness. Many are already building Payday Super features and can help streamline your transition. For support with reconciliation and accuracy, our Bookkeeping Services can also help ensure your payroll data stays compliant.
The move to Payday Super is a big shift, but with the right preparation, it can make your payroll process smoother and more transparent. Trekk Advisory is here to help you understand the changes and put the right steps in place.
Here’s how we can support you:
Explain what’s changing and what you need to do.
Review your payroll systems and timing ahead of 1 July 2026.
Give you practical, confidence-building guidance as you make the transition.
We’re here to help you navigate these changes with confidence. If you’d like support reviewing your payroll or planning your cash flow for more regular super payments, contact our team - we’re here to help.