Payday Superannuation Is Coming: What It Means for Employers

The Big Shift: From Quarterly to Payday Super

From 1 July 2026, all Australian employers will be required to pay superannuation at the same time as wages — not quarterly.

This upcoming reform, known as “payday superannuation”, is one of the most significant changes to the super system in recent years. It’s designed to ensure that employees receive their super on time, every time, and that businesses stay up to date with their obligations.

Under the current system, most employers pay super contributions quarterly — often weeks or even months after employees have earned the money. Payday super will remove this delay, making super payments a regular part of your pay cycle.

💡 What Was the ATO Superannuation Clearing House?

The Small Business Superannuation Clearing House (SBSCH) was a free online service provided by the ATO to help small businesses meet their super obligations.

It allowed employers with 19 or fewer employees or an annual turnover under $10 million to make a single super payment to the clearing house. The ATO would then distribute those payments to each employee’s chosen super fund.

It existed to simplify the process, especially for small employers who didn’t have sophisticated payroll systems or clearing house access.

However, with the introduction of payday super and modern payroll systems, the SBSCH has become outdated. The government’s aim is to streamline super payments through direct integration with payroll software rather than a separate system.

📅 When Will Payday Super Roll Out?

The official start date for payday super is 1 July 2026, but the ATO is strongly encouraging businesses to start transitioning early.

This means that from July 2026 onwards super contributions must be paid each pay period, in line with your pay run dates.

Payroll systems already automatically report through Single Touch Payroll on both PAYG withholding tax and superannuation.

While this might feel like an extra administrative burden at first, in the long run, it will actually make compliance easier — and remove the quarterly cashflow shock that often comes with super payments.

⚠️ Why It Matters — The ATO Is Cracking Down on Super

The ATO has made it clear that superannuation compliance is a major enforcement focus.

Over the past few years, the ATO has:

• Increased data-matching with super funds to identify late or missing payments

• Imposed more super guarantee charge (SGC) penalties for overdue super

• Targeted businesses that repeatedly pay late or underpay super

Failure to pay super on time doesn’t just lead to a bill — it results in penalties, interest, and loss of tax deductions. The ATO has already signalled that these checks will intensify as payday super approaches.

⚙️ The Benefits of Moving Early

Getting into the payday rhythm now, before it’s mandatory, can make the transition smoother and strengthen your business processes.

Here’s why it’s worth starting early:

• ✅ Simplified compliance: No more juggling quarterly due dates.

• ✅ Improved cashflow management: Smaller, more regular payments are easier to handle than large quarterly bills.

• ✅ Reduced risk: Fewer chances of missing deadlines or accruing penalties.

• ✅ Better staff trust: Employees see super contributions in real time.

By moving now, you’ll give yourself time to test your systems, work out any bugs, and ensure your payroll software can handle payday super well before 2026.

🧭 What You Can Do Now

1. Review your payroll software: Make sure it can process and report payday super automatically.

2. Talk to your bookkeeper or accountant (that’s us!):We can help you review cashflow and set up systems to handle more frequent super payments.

3. Budget for regular super:Treat it like any other ongoing payroll cost — not a quarterly lump sum.

4. Stay informed:The ATO will release more updates and technical guidance as 2026 approaches.

Payday super is about making super simpler, fairer, and more reliable for everyone. While it marks the end of the free ATO Super Clearing House, it also opens the door to automated, integrated, and transparent payroll systems.

By adjusting now, you can stay compliant, protect your employees’ entitlements, and avoid unnecessary penalties later.

If you need help reviewing your payroll or super processes, reach out to MJA Business Solutions — we can make sure your business is ready for payday super well before the deadline.