Superannuation Changes — Preparing for Payday Super
Effective 1 July 2026, a major change to superannuation law—known as Payday Super—will require all employers to pay their employees' Super Guarantee (SG) contributions on the same day as their wages. This shifts the current requirement from quarterly to pay-day frequency.
- For Employees: This change is highly beneficial, leading to potentially higher retirement balances due to more frequent compounding investment. It also provides greater assurance that contributions are being paid correctly and on time, supported by increased ATO oversight.
- For Employers: This necessitates greater operational compliance. Businesses will need to invest in streamlined, online payroll services to manage the required reporting and more frequent payments. While payments will be smaller, they will require careful and regular cash flow management.
We are actively assisting our clients to ensure their online bookkeeping and payroll platforms meet these new ATO reporting and payment standards. To prepare, employers must ensure all employee details are current and establish a clear process for employees to promptly advise of any changes to their super fund.
We strongly encourage you to adopt this new process now. Starting early can immediately improve your business cash flow, reduce your outstanding super liability more regularly, and give you plenty of time to smooth out any implementation issues before the 2026 deadline.