Superannuation is Changing: Key Actions for Employers ahead of Payday Super

Are you prepared for Payday Super?

Payday Super represents one of the biggest shifts to employer superannuation obligations in years. Balanced Beans explains the new requirements and highlights the actions you should take before 1 July 2026 to stay compliant and avoid penalties.

Payday Super

Superannuation payment rules are changing from 1 July 2026, with Payday Super introduced to reduce unpaid super and improve payment timeliness.

Currently, super guarantee (SG) contributions can be paid quarterly (within 28 days of the end of each quarter). Under the new Payday Super rules, you’ll be required to pay super at the same time as wages, with contributions reaching your employees’ super funds within 7 business days of each payday.

Below is a summary of what’s changing and how it may affect your business.

Cashflow

Instead of four quarterly payments, super will now be due every pay cycle. If you pay staff fortnightly, that’s 26 super payments per year instead of 4. We recommend reviewing your cash flow forecasts now so this doesn’t catch you off guard.

Payroll Systems

Your payroll software will need to process and submit super with every pay run. We’d encourage you to check with your payroll provider that their system is Payday Super-ready, and to start testing the process before July. The current Single Touch Payroll (STP) system will continue to report payroll information to the ATO allowing for data matching.

Clearing house changes

If you currently use the ATO’s Small Business Superannuation Clearing House (SBSCH), please note that it will close on 1 July 2026 and is no longer accepting new registrations. You’ll need to transition to a commercial clearing house or an integrated payroll solution before then.

New penalties

The penalty framework is changing. Late payments will attract a Superannuation Guarantee Charge (SGC) that includes the shortfall amount, interest, and an administrative uplift of up to 60%. These penalties are assessed per payday, not per quarter.

Calculation changes

SG will be calculated on ‘qualifying earnings’ (QE) rather than ‘ordinary time earnings’ (OTE). The maximum contribution base is also moving from a quarterly to an annual threshold, which may affect how you handle high-income employees or one-off bonus payments. Additionally, superannuation will be calculated on salary sacrificed amounts.

Tax deductibility

Currently, superannuation is not deductible if paid late. From 1 July 2026, the SGC is tax deductible however penalties apply (refer above).

The ATO has indicated it will take a supportive, education-first approach during the first 12 months, but only for employers who are genuinely making an effort to comply. Read more here.

What Balanced Beans recommends you do now:

Review your payroll system and confirm it supports payday-aligned super payments. For Xero users, Auto super is included in your plan and is ready for implementation. This includes ensuring earnings are reported as Qualified Earnings. For payroll clients, we will undertake this process for you.
If you use the SBSCH, begin transitioning to an alternative solution.
Update your cash flow forecasts to account for more frequent super payments.
Audit your employee records to ensure super fund details and SG eligibility are up to date.

Helpful guides

We have prepared the following guides & FAQs to help you to understand Payday Super and navigate the changes.

Payday Super Articles - Balanced Beans

Payday Super FAQ - Balanced Beans

Payday Super Readiness Checklist - Balanced Beans

Preparing early will make the transition to Payday Super easier.

We’re here to help you navigate this transition. If you’d like to discuss how Payday Super will affect your business specifically, or if you need help reviewing your payroll and cash flow arrangements, get in touch with the experienced team at Balanced Beans.