PaySuper is coming: what every employer needs to know.

Superannuation is changing – and it’s one of the biggest updates employers have seen in years.

From 1 July 2026, the Australian Government will introduce Payday Super, meaning employers will need to pay their employees’ super contributions at the same time as their salary or wages – not quarterly.

What Employers Need to Do

To get ready for 1 July 2026, businesses (including any Self-Managed Superannuation Fund) should start preparing early. Here’s how:

1. Review Your Payroll Software

Check whether your payroll system or provider (e.g. Xero, MYOB, QuickBooks, or other platforms) supports automated super payments each pay cycle.

Most major software providers are already working on PayDay Super-ready features – but you’ll need to ensure your business activates them.

2. Update Your Payroll Processes

If you currently pay super quarterly, move towards a per-pay-cycle payment process.

This may involve:

• Updating your internal payroll procedures.
• Adjusting cash flow forecasts.
• Scheduling super payments alongside wage runs.

3. Check Employee Details

Make sure all employee super fund details are accurate and up to date. Incorrect fund information can cause delays and compliance issues.

4. Educate Your Team

If you have payroll or finance staff, make sure they’re aware of the legislative change and trained on the new process before 1 July 2026.

5. Stay Informed

Keep an eye on ATO updates, industry newsletters, or your software provider’s announcements about PayDay Super. The ATO will release detailed compliance guidance closer to the start date.

Final Tip:

Start early. Testing your new payroll and super process ahead of time will help you avoid last-minute headaches and ensure you’re fully compliant by July 2026.

⚠️Non-Compliance: What Happens If You Miss a Payment

Under the new rules, super contributions must reach the employee’s nominated super fund within seven business days after payday.

If your business fails to do so, you may face serious compliance consequences, including:

• You will be required to lodge Superannuation Guarantee Charge (SGC) form
• Loss of Tax Deductibility – Any late super payments (made after the due date) are not tax deductible, even if you pay them later.
• Possible Penalties or Legal Action – Continued or serious non-compliance may lead to additional ATO penalties and director liability under the Superannuation Guarantee (Administration) Act 1992.

In short: Make sure your employees’ super contributions are paid and received on time – every payday – to avoid costly penalties and non-deductible payments.

Important Update: SBSCH to Close from 1 July 2026

If you currently use the Small Business Superannuation Clearing House (SBSCH) to pay employee super, this will soon change. The SBSCH will be closed to all users from 1 July 2026 as part of the PayDay Super reforms.