Payday Super starts on 1 July 2026. From this date, all Australian employers must pay superannuation contributions concurrently with wages. The legislation was passed on 6 November 2025 and there is no delay or exemption for small businesses.
Under the current system, employers can pay super up to 28 days after the end of each quarter — meaning contributions can be up to 90 days late. Under Payday Super, contributions must be paid every time wages are paid (weekly, fortnightly, or monthly) and must reach the employee's super fund within 7 business days of payday.
The Superannuation Guarantee (SG) rate is 12% from 1 July 2025 and remains at 12% through 2026–27. While the rate itself is not increasing, the way and timing of how super must be paid changes significantly under Payday Super.
The ATO Small Business Superannuation Clearing House closes permanently on 1 July 2026. New registrations have already stopped. If your business currently uses the SBSCH, you must migrate to a commercial clearing house or use the super payment feature in your payroll software (such as Xero, MYOB, or QuickBooks) before 1 July 2026.
If super is not received by the employee's fund within 7 business days of payday, the Superannuation Guarantee Charge (SGC) applies. The SGC includes the unpaid super amount, interest, and an administration fee. Penalties are calculated from the date of the original missed contribution — not from when the ATO discovers it — so late payments can accumulate significant charges.
Yes. Payday Super applies to all employees who are entitled to superannuation guarantee contributions, including casual and part-time workers. It also applies to certain contractors who are deemed employees for superannuation purposes under the extended definition in the SG legislation.
Under the quarterly system, businesses could hold onto super obligations and use that cash for up to 90 days. Payday Super removes this buffer entirely. If you run weekly payroll, super must leave your account 52 times per year instead of 4. This is a significant cash flow change, and businesses should update their cash flow forecasts and budgets now to account for the new payment frequency.
Yes. Your payroll software (Xero, MYOB, QuickBooks, or others) must be updated to support Payday Super before 1 July 2026. Most major providers are already releasing or have released compatible updates. You should confirm with your software provider that your version supports Payday Super and that super payments can be processed at the same frequency as your payroll cycle.
From 1 July 2026, the income tax rate for earnings between $18,201 and $45,000 drops from 16% to 15%. It drops again to 14% from 1 July 2027. Your payroll system must be updated in both financial years to apply the correct withholding rates. Incorrect configuration can result in employees being under or over-taxed.
If your business has any overdue superannuation contributions, you should clear them before 1 July 2026. Outstanding quarterly super can cause complications under the new Payday Super system, where new contributions may be allocated to the oldest unpaid debt first. If you have overdue super, a Superannuation Guarantee Charge Statement should be lodged with the ATO and a payment plan arranged as soon as possible.
Yes. Procura Global helps Australian SMEs review their payroll systems, migrate away from the SBSCH, update payroll software, and plan for the cash flow impact of Payday Super. Contact our team today to ensure your business is fully prepared before 1 July 2026.
