From 1 July 2026, a significant change to Australia’s superannuation system will take effect.
Known as “Payday Super”, this is designed to improve transparency, ensure employees receive their super contributions more promptly and reduce potential delinquency by some employers.
What is changing?
What constitutes Qualified Earnings?
For most employers, the super calculation won’t change. What you will have to look out for is if you have any independent contractors that are paid mainly for their labour, commissions paid to employees and some salary sacrifice arrangements.
Don’t hesitate to ask if you need to change your super calculations.
Why the change to Payday Super?
The Government introduced this reform to address the ongoing issue of unpaid or delayed super and to improve retirement outcomes for Australian workers.
Paying super more frequently allows funds to be invested earlier, increasing the potential for long-term growth through compounding. It will also provide greater transparency for both employees and employers, as super payments will align more closely with payroll reporting, rather than a separate quarterly obligation.
What employers need to do
For employers, Payday Super represents an important compliance change that may require updates to existing payroll systems, processes, and cash-flow management.
- Review and update payroll systems and procedures to ensure super contributions can be processed alongside wages.
- If you’re still using the Small Business Superannuation Clearing House (SBSCH), transition to an alternative provider
- Confirm employee super fund details are current and correct.
- Plan for cash flow changes. Businesses that currently pay quarterly will need to fund super more frequently.
- Speak with your advisor. Early planning and expert advice can help avoid compliance issues once the new rules commence.
While the ATO has advised they will have a supportive approach to the first year of Payday Super, it is advisable to get yourself ready now to ensure your process and payments are working from day one.
The commencement date of 1 July 2026 is fast approaching, and we encourage everyone to prepare as soon as possible. Early planning will help avoid administrative disruption and ensure ongoing compliance with superannuation obligations.
Have a chat to one of our advisors and consider processing your June Quarter amounts earlier to ensure your process is working the way as intended. The ATO provides a checklist that highlights what you need to get ready for 1 July 2026.
You can access Payday Super resources and more information from the ATO.
If you are an employer and would like guidance on how these changes may affect your payroll processes or cash flow, our team would be happy to assist.