In a significant shift for Australian employers, the federal government has confirmed that “Payday Super” will become mandatory from 1 July 2026. This means that employers will be required to pay their employees’ superannuation at the same time as their salary and wages—rather than quarterly, as has been the standard until now.
So, what does this mean for your business? And what do you need to do now to get ready?
What is Payday Super?
Currently, superannuation guarantee (SG) contributions must be paid quarterly. Under the new Payday Super system, employers will need to pay super at the same time they run payroll—whether that’s weekly, fortnightly, or monthly.
This change is intended to:
- Improve transparency and fairness for workers,
- Prevent unpaid or underpaid super from going unnoticed,
- Help employees grow their retirement savings more consistently.
Key Considerations for Employers
While 1 July 2026 might seem far away, making the shift to Payday Super will involve operational, compliance, and cashflow changes. Here’s what employers should start thinking about now:
1. Cashflow Management Will Change
One of the most significant impacts for many businesses will be on cash flow. Currently, you have up to four months before SG payments are due. Under the new rules, that breathing room disappears.
What to consider:
- Short-term cash reserves may need to be higher to cover super contributions at each payroll run.
- Businesses with tight cash flow cycles (such as seasonal or project-based businesses) will feel this the most.
- Payment forecasting and payroll scheduling need to be adjusted to account for more frequent outflows.
This is a prime opportunity to review your current cashflow position and build a plan that supports more regular super payments.
2. Review Payroll Systems & Software
Not all payroll systems currently support automatic super payments per pay run. You’ll need to:
- Ensure your software provider will be compliant by July 2026.
- Check that SuperStream obligations can still be met.
- Confirm that your processes support real-time payment tracking.
If you’re still doing payroll manually or using outdated software, now is the time to make the switch. Speak to our bookkeeping team to help get you sorted, well in advance.
3. Compliance and Risk Reduction
While this change adds pressure, it also reduces the risk of accidental non-compliance.
By aligning super payments with wages:
- There’s less room for error or forgetting quarterly deadlines.
- You reduce the risk of Superannuation Guarantee Charge (SGC) penalties.
- Your employees will benefit from more frequent compounding of their retirement savings.
4. Start the Transition Now
The sooner you start planning, the smoother your transition will be. Consider:
- Conducting a cash flow stress test.
- Reviewing or renegotiating supplier terms to improve working capital.
- Talking to your accounting and payroll advisors to map out changes.
MBC’s Take: Let’s Plan for This Together
At MBC, we help business owners go beyond compliance. We know that running a business is about more than just ticking boxes—it’s about building a financially sustainable operation that aligns with your goals.
We can help you:
- Understand the financial implications of Payday Super,
- Review your current payroll and cashflow processes,
- Put in place strategies that support a seamless transition well before 1 July 2026.
Next Steps
Want to know how your business will be impacted?
Book a chat with our team today. Let’s make sure you’re ahead of the change—not scrambling to catch up.
