If you employ staff, you may already have noticed one of the biggest changes to superannuation in many years.
Payday Super commenced on 1 July 2026, changing when employers need to pay their employees’ superannuation.
Previously, many businesses paid super quarterly. Under Payday Super, super is now paid in line with your normal payroll cycle – whether you pay your employees weekly, fortnightly or monthly.
The Super Guarantee rate remains at 12%. What has changed is when the super needs to be paid.
What does Payday Super actually mean?
Put simply:
When you pay your employees, you also need to deal with their super.
Super contributions generally need to reach the employee’s super fund within 7 business days after payday. This means businesses can no longer rely on waiting until the end of the quarter to deal with their super obligations.
For example, if your employees are paid fortnightly, you will now also have a super obligation associated with each fortnightly payday.
Why getting your payroll right matters even more now
Payday Super means there is much less room for delays or errors.
Incorrect employee super fund details, missing information or rejected contributions need to be identified and corrected quickly.
It is also important that payroll information is provided to your bookkeeper or payroll provider on time. Late timesheets, last-minute changes and additional pay runs can now affect not only wages and payroll reporting, but also the timing of your super obligations.
Super funds generally have three business days to allocate a contribution to an employee’s account or return it, making it particularly important to deal with rejected or returned payments promptly.
What about contractors?
This is an area that can catch businesses out.
Simply calling someone a contractor – or the person having an ABN – does not necessarily mean there is no super obligation.
Some contractors who are paid mainly for their labour can be treated as employees for Super Guarantee purposes. Their circumstances need to be considered carefully to determine whether super applies.
If you regularly engage contractors and are unsure whether you should be paying super for them, it is worth checking rather than assuming.
What happened to the ATO Small Business Superannuation Clearing House?
The ATO’s Small Business Superannuation Clearing House (SBSCH) closed permanently on 1 July 2026 as part of the Payday Super changes.
Businesses that previously used the clearing house now need to use an alternative SuperStream-compliant payment method, such as an appropriate payroll or superannuation payment service.
What happens if super is late?
This is the part employers really need to pay attention to.
If the correct super contribution isn’t received by the employee’s fund within the required timeframe, the employer may become liable for the Super Guarantee Charge (SGC).
This can create additional reporting, administration and cost for the business, so prevention is certainly better than fixing the problem afterwards.
What should I be doing now?
For most small businesses, Payday Super doesn’t need to be complicated. It does, however, mean having good payroll processes in place.
Make sure employee and contractor information is kept up to date, payroll information is supplied on time, sufficient funds are available for both wages and super, and any rejected or returned super payments are dealt with promptly.
Most importantly, don’t leave a super problem sitting there because you’re not sure what to do with it. The timeframe for sorting these issues is now much shorter.
Need a hand?
At First Class Accounts – Snowy Mountains, we work with small businesses to help manage bookkeeping, payroll and superannuation obligations.
If you’re unsure whether your payroll processes are working properly under Payday Super, or you simply want someone to help take the headache out of keeping everything on track, we’re happy to have a chat.
You can also find further information about Payday Super directly from the Australian Taxation Office.