For many employers, this will mean a shift in how payroll and cashflow are managed. Super will no longer sit in the background until the quarterly deadline. It must be processed alongside wages each pay run.
The purpose of the change is to make sure that employees get their super quicker and more regularly.
While the start date is still some time away, it’s a good idea for businesses to begin thinking about what the change will mean for their payroll systems and processes.
What Will Change Under Payday Super
At the moment, most employers pay super four times a year. From the 1st of July 2026, super must be paid on every single pay period. Employers will also need to make sure that the contributions for the super are received into the super fund of the employee inside 7 days of the actual pay date.
Another change is the introduction of a new term called qualifying earnings. This will be used to determine how super is calculated.
In most cases, qualifying earnings will include things such as:
- Ordinary time earnings.
- Payments of ordinary hours worked.
- Certain types of paid leave.
- Allowances and bonuses.
- Commissions.
- Salary sacrifice contributions to super.
The definition may also apply to some contractors who are paid mainly for their labour.
Employers will continue to report earnings and super with the STP (Single Touch Payroll) system, but payrolls will need to do super payments more often.
Early 2026 Is the Time to Start Planning
As we move closer, employers should start looking at how this new process will fit into their existing payroll procedures.
One of the first things to consider is how your business will move from quarterly super payments to payments every pay run. For some businesses, this may simply mean adjusting payroll settings. For others, it may require changes to cashflow planning or payroll workflows.
It’s also a good time to review employee super details. Incorrect information, such as outdated fund details or incorrect member numbers, can cause payments to be rejected. Taking the time to check these details early can prevent issues once Payday Super begins.
If you’re unsure how the change will affect your payroll or cashflow, it’s worth discussing it with your accountant or payroll provider.
Mid-2026: Making Sure Everything Is Ready
By the middle of 2026, businesses should be confirming that their systems are ready for Payday Super. This includes checking that payroll software is capable of handling super payments every pay cycle.
If your business uses a super clearing house, it’s also important to confirm that it will support Payday Super payments.
Important note – many SMEs currently use the ATO Small Business Superannuation Clearing House. On the 1st of July 2026, it will close. So, businesses using it will need to move to another clearing house provider before that date.
Before the service closes, employers should download and keep any historical records. These records may be needed later if the ATO reviews past super payments or if employees have questions about previous contributions.
Businesses should also make sure there is a process in place to correct any super payment errors quickly and to ensure payments are submitted early enough for funds to receive them within the required timeframe.
What Happens When Payday Super Starts
From 1 July 2026, Payday Super officially begins.
Employers must make sure the contributions for super are:
- Calculated correctly based on the new qualifying earnings.
- Paid on time – contributions must go into the employee’s fund inside 7 days (business) of the payday.
- Sent to the correct super fund to avoid rejections or delays.
Super amounts and qualifying earnings will continue to be reported through STP-enabled payroll software.
Businesses should also remember that the final quarterly super payment for the quarter Apr-Jun 2026 will still need to be paid by 28 July 2026. After that point, super will move fully to the Payday system.
Failure to meet the new rules may result in penalties, including the SGC (Superannuation Guarantee Charge). This can be higher than the original super amount owed.
Preparing Early Will Make the Transition Easier
Although Payday Super does not begin until July 2026, businesses that prepare early will generally find the transition much smoother.
Reviewing payroll systems, checking employee super details and understanding how more routine payments for the super could affect the cashflow are all sensible steps to take now.
If you would like guidance on how Payday Super may affect your business, the team at DSV can help. We can review your payroll setup, discuss any cashflow considerations and help ensure everything is ready well before the 1st of July 2026 start date.