Payday Super

A big change is coming to superannuation in Australia, and it affects every employer who pays super guarantee. It's called Payday Super, and it changes when you need to pay your employees' super contributions.

From 1 July 2026, superannuation will need to be paid at the same time you pay wages, every payday, not quarterly.

Let's break it down in plain language.

What's changing

Right now, employers pay super four times a year, usually in October, January, April and July, and funds have up to 28 days after the quarter ends to receive it.

Under the new Payday Super rules:

• When: Super must be paid on payday (not quarterly)
• How fast: Must reach the fund within 7 business days
• What's included: Calculated on qualifying earnings (QE), not just ordinary time earnings

Qualifying earnings include things like overtime, bonuses, and allowances, not just base salary.

For example: If you pay staff fortnightly on Thursdays, their super needs to hit their fund by the following Thursday (7 business days later). No more waiting until the end of the quarter.

That's a pretty big shift for most businesses that have been used to quarterly payments for decades.

Who this applies to

Most employers who currently pay super guarantee will be affected. That includes small businesses, medium businesses, and larger employers. If you currently make SG contributions on behalf of employees, you'll need to meet the new Payday Super timing from July 2026.

There are a few narrow exceptions. For example, the first super contribution for a new employee may have slightly longer timeframes in certain cases. But the general rule will be that super goes in at the same time as wages.

It's also worth noting that many employers already pay super more frequently (like monthly) or with each pay run. If so, you might already be close to meeting the new rules. But you'll still want to check your systems to make sure payments arrive in time.

Why this is happening

The idea behind the change is pretty simple.Super is meant to be part of someone's pay, but under the current system, it can be paid up to 4 months after it's earned. That means:

• Employees don't get their super (and the investment returns on it) until months later, and
• Unpaid super is harder to spot and fix.

Payday Super aims to fix that by making sure super is paid quickly and regularly, at the same time you pay wages, which should help employees see their contributions sooner and more transparently.

Industry commentary suggests the change could also reduce unpaid super and boost retirement balances for employees over the long term.

Here's how it compares

What employers will need to do

There's a bit of preparation involved:

1. Review your payroll systems Check that your software can process super with each pay run and automatically send payment files to super funds. Most modern systems like Xero, MYOB, and QuickBooks already do this. But you'll want to confirm yours is ready.

2. Update your processes You might need to tweak how you process payroll, how often you run pay cycles, and how super amounts are sent to funds so they arrive within the 7-business-day window.

3. Plan for cashflow changes Instead of paying super quarterly (with a bit of breathing room), you'll need the cash on hand each pay run. For some businesses that could stretch cashflow tighter than before.

4. Ask your accountant or payroll provider This is a good time to speak with whoever helps you with payroll and tax. They can check you're set up correctly before July 2026.

What happens if you get it wrong

Just like the current system, super payments that aren't received on time can lead to liabilities like the Super Guarantee Charge (SGC). Under Payday Super, late payments are defined relative to the payday deadlines.

So it's not just "pay by the end of the quarter" anymore. It's "pay super quickly with every pay run."

What to think about now

The change is a big one, but July 2026 is a firm start date that's now law. There's no requirement to wait until then. You could start aligning super payments with pay runs now if your systems allow it.

Here's the simplest way to think about it:

• Old rules: pay a few times a year
• New rules: pay every time you run payroll

It helps your employees get their super sooner, and it means you need to be set up for it.

This sounds like a lot, but if you start planning now, you'll have plenty of time to adjust. Most payroll systems are already being updated to handle it. You just need to make sure yours is one of them.

How we can help

If you're wondering how this applies to your business, or want help getting your systems ready, we can walk you through it.

We can review your payroll setup, check how your super contributions are calculated and timed, and help make sure you're ready for Payday Super before July 2026.

📞 (07) 5409 2300 ✉️ info@ftaaccountants.com.au 🌐 ftaaccountants.com.au

Quick recap

• Payday Super starts 1 July 2026
• Employers will need to pay super at the same time as wages
• Super must be received by funds within 7 business days of payday
• The way super is calculated shifts to include qualifying earnings
• This is one of the biggest shifts in super timing for decades and worth planning for early