Payday super changes: what you need to know

Key takeaways

• From 1 July 2026, you are legally required to make employee super contributions with every pay cycle – weekly, fortnightly or monthly.
• Ensure you’re prepared by updating your cash flow forecast, automating the payments in your payroll system and reviewing your super clearing house arrangements.
• There will be stricter enforcement of super payments under the new system with the ATO monitoring compliance in real time.

The way you pay your employees superannuation will be changing from 1 July, 2026. From this date, employers will be required to make contributions to their employees’ super accounts with every pay cycle.

For employers used to dealing with super payments each quarter, this could be a significant change to how you manage your cash flow. Read on to learn exactly what’s changing and discover some tips to help make the transition smooth for your business and your employees.

How are super payments changing?

Under the current system, employers only need to make employee super contributions once per quarter. This has meant employers were able to use their pooled super contributions as a cash flow buffer that they could access if they faced a short-term cash shortfall.

Under the new system, super must be paid every time your business pays its employees, whether that’s weekly, fortnightly or monthly. The legislation has implemented a 7-day rule where contributions must reach an employee’s super fund within a week of payday or else the employer will begin accruing penalties.

The purpose of the change is to try and address the $5 billion in unpaid super that Australian workers miss out on each year. Having super added to their accounts more regularly will also add an estimated $7,700 to the average Australian’s super balance at retirement due to more frequent compounding.

Regular super payments and your cash flow

For employers who have already been making regular contributions to their employees’ super, these changes should have minimal effect.

However, if you’ve been making contributions on a quarterly basis, it’s important that you consider the possible cash flow effects of the change.

Put simply, from 1 July you’ll need to have an extra 12% of your total payroll available on every payday. So, if your monthly payroll is $50,000, then you need to have an extra $6,000 in super contributions ready at the same time.

While this may require some adjustment, it’s worth remembering that it’s only a shift in capital payments, not a new expense. Also, removing quarterly super as a liability on your balance sheets can be beneficial: with lower liabilities, you may be able to access more favourable funding terms from banks and other financial institutions.

3 steps to get ready for payday super

1. Review your payroll software: check your accounting software to make sure they can process your super payments each pay cycle and offer Single Touch Payroll integration.
2. Update your cash flow forecasts: model the new payment timings and amounts in your cash flow forecast so that you can understand where any shortfalls might occur and whether you need overdraft or credit support from your bank to make the transition.
3. Check your clearing house arrangements: as part of the payday super changes, the ATO’s Small Business Superannuation Clearing House (SBSCH) will be closing on June 30, 2026. If you are currently using the SBSCH, you’ll need to arrange for an alternative clearing house to distribute your payments to the correct super funds.

The best advice would simply be to start early. You don’t have to wait until July 1 to begin offering payday super. Starting now will give you more time to understand exactly how the change might affect your operations and cash flow buffers – before the arrival of mandatory rules and associated penalties.

Useful ANZ resources:

• ANZ Cash Flow Template
• Managing small business cash flow
• The importance of accounting software

Penalties for non-compliance

Super payments that arrive after the 7-day period will be subject to a newly beefed up Super Guarantee Charge. Unlike the current SGC, this penalty is tax-deductible. However, the new SGC also involves daily interest, an administrative fee of up to 60% (lessened with voluntary disclosure) and an additional 25% penalty if the shortfall isn’t rectified with 28 days (increased to 50% if you have been liable for the same penalty in the previous 24 months).

The ATO have announced they will be conducting real-time monitoring and enforcement of the system using Single Touch Payroll, although they are taking a lenient approach for the first year for businesses who are genuinely trying to comply.

There are some limited exceptions to the 7-day rule:

• New employees are allowed an additional 14 days for their first super payment.
• If contributions to a “stapled fund” (an existing fund used when an employee has not specified a super fund) are rejected, the employer is given 6 weeks to rectify the payment.
• Super on irregular and one-off payments that occur outside regular payroll cycles can be added to the next payday.

It’s also worth noting that super funds must now process contributions within 3 business days (down from 4 weeks).

Getting prepared now

While payday super could be a major shift in how you manage superannuation, the change should be manageable with the right preparation. The key is to start planning early: review your systems, model your cash flow and consider making the switch before it becomes mandatory.

By acting now you'll ensure a smooth transition for your business and your employees, while avoiding the stress of last-minute changes and potential penalties.

If you'd like to discuss how these changes might affect your business cash flow, speak with your ANZ business banking specialist.