November 28, 2025
Important Update: Payday Superannuation Changes Coming Soon
Big news for employers and employees alike! From 1 July 2026, the way superannuation is paid is getting a major shake-up. Under the new Payday Super rules, employers will need to pay super contributions at the same time as wages, rather than the current quarterly schedule.
What does this mean in practice?
- Super payments must hit employees’ funds within seven business days of each payday.
- The goal is simple: reduce unpaid super, boost retirement savings, and give employees better visibility over their entitlements.
This reform is a win for workers, but it does mean businesses need to get their skates on. Start preparing now by reviewing payroll systems and processes to make sure they can handle these new timelines.
The Australian Taxation Office (ATO) has already released guidance and resources to help employers transition smoothly. You can check out their official update here and we can help you prepare your reporting for this change.
Why the change?
Currently, many employees don’t see their super hit their accounts for months, and unpaid super is a growing problem. By aligning super with payday, the government hopes to close the gap and make retirement savings more transparent and secure.
Penalties for Non-Compliance
Failing to meet the new deadlines won’t just be a slap on the wrist. The ATO will continue to apply the Superannuation Guarantee Charge (SGC) for late payments, which includes:
- Interest on unpaid amounts (currently 10% per annum).
- Administration fees.
- Loss of tax deductions for late super contributions.
In short: paying late could cost you more than just the super itself. Staying compliant is the cheaper option!
Cash Flow Tips for Small Businesses
We get it—moving from quarterly to payday super can feel like a cash flow crunch. Here are some practical tips:
- Forecast early – Update your cash flow projections to include super in every pay cycle.
- Automate payments – Use payroll software that integrates super payments to avoid manual delays.
- Consider weekly or fortnightly pay runs – Smaller, more frequent payments can ease the pressure compared to monthly lump sums.
- Talk to us – We can help you plan for the transition, assist with your reporting and avoid surprises.
