The introduction of Payday Super is one of the most significant changes to Australia’s superannuation system in recent years. From 1 July 2026, employers will be required to pay super at the same time as salary and wages, rather than quarterly.
While on the surface it may appear to be a simple timing adjustment, in reality Payday Super has far-reaching implications for how payroll, finance, HR and governance teams operate. It affects cash flow, systems, compliance and even the frequency with which you pay staff.
We will be running a webinar: Payday Super Changes: What Employers Need to Know Before July 2026 on Thursday 29 January at 1.00pm (AEST). Register now to secure your spot.
This guide explains what Payday Super is, how it will impact your business and the practical steps you should take now. It also links out to more detailed articles in each key impact area so you can dive deeper where you need to.
What Is Payday Super?
Payday Super is a change to the Superannuation Guarantee (SG) rules that will require employers to pay their employees super contributions at the same time as each pay cycle, rather than making contributions quarterly.
This means:
- If you pay employees weekly, super must be paid weekly.
- If you pay fortnightly, super must be paid fortnightly.
- If you pay monthly, super must be paid monthly.
Super contributions will also need to reach the employee’s super fund within a short, legislated timeframe, currently set at within seven business days of each payday.
The aim of Payday Super is to:
- Reduce unpaid and late super.
- Improve employees’ retirement outcomes by getting money into their funds sooner.
- Increase transparency and give the ATO faster, more accurate data.
When Was Payday Super Legislation Introduced?
Payday Superannuation was first announced by the Australian Government on 2 May 2023 as part of the 2023–24 Federal Budget.
Following consultation and exposure draft legislation in 2025, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 passed both Houses of Parliament and received Royal Assent in early November 2025.
When Does Payday Super Start and Who Does It Affect?
The new super rules commence on 1 July 2026. From that date, employers will need to pay Superannuation Guarantee (SG) contributions in line with each pay cycle and ensure those contributions are received by employees’ super funds within seven business days of each payment.
Payday Super applies to all employers who are required to pay SG contributions, covering eligible full time, part time and casual employees across all industries. This includes microbusinesses, small and medium businesses right through to large corporations.
Payday Super Changes: Why This Is a Bigger Shift Than Most Employers Realise
On the surface, Payday Super sounds like a timing change. In reality it restructures how payroll and finance teams must operate and will change the way your payroll cycle, cash flow and compliance processes work together.
1. Significantly reduced processing window
Under the current rules, employers have up to 28 days after the end of each quarter to pay superannuation contributions. With the new super rules, that window shrinks dramatically: payment must occur on or very close to payday. Super needs to be received by the employees’ superfund within 7 business days, leaving little room for:
- corrections to pay, allowances or loading
- late timesheets and last-minute roster changes
- cash flow delays or approval bottlenecks
- manual processing issues
What used to be a quarterly clean-up becomes a per-pay-run discipline.
2. Payroll systems must calculate and transmit data instantly
Not all payroll platforms are currently capable of real-time super calculations or instant SuperStream-compliant reporting. Many businesses will need to:
- Upgrade or replace payroll software.
- Reconfigure existing systems to support the new super rules.
- Put in place new integrations with super clearing houses and accounting systems.
If your current setup relies on manual uploads or batch processing, there is a high chance it will not cope well with the new superannuation rules without changes.
3. Cash flow impact
Quarterly payments allowed businesses to hold on to super amounts for weeks or months before paying them out. This will no longer be the case. Super is no longer something businesses can “catch up on” at quarter-end. Payday Super will particularly affect:
- Businesses with tight or seasonal cash flow
- Employers who rely on quarterly cycles to smooth expenses
- industries with variable rosters or fluctuating labour costs
Under the new superannuation rules, the money leaves your account every pay cycle, so cash flow forecasting and liquidity management become far more critical.
4. Greater compliance visibility and enforcement
With enhanced Single Touch Payroll (STP) reporting and more frequent SG data, the ATO will have far better visibility of:
- Late or missed super payments.
- Underpayments and calculation errors.
- Patterns of non-compliance.
Issues that might previously have gone unnoticed for months could be flagged quickly. This new level of scrutiny means processes that were “good enough” under quarterly super may no longer meet compliance standards.
How Payday Super Will Impact Your Business
To get a handle on what needs to change, it helps to look at Payday Super across four key impact areas. Each of these is covered in more detail in a supporting article.
Cash Flow And Liquidity
More frequent super payments change the rhythm of your cash outflows. For many employers, this will require:
- Updating short, medium and long-term cash flow forecasts.
- Building or increasing working capital buffers.
- Exploring cash smoothing strategies to reduce pressure
For a deeper look at how more frequent super payments will affect your working capital, read our guide Cash Flow Planning For Payday Super: How To Avoid Surprises. It steps through practical ways to model the impact and protect your cash position.
Payroll Compliance And ATO Obligations
Payday Super increases the frequency of your super obligations and the speed at which the ATO can see if you are falling behind.
Areas to review include:
- Alignment between your pay cycle and SG payment process.
- Accuracy and completeness of payroll data every pay run.
- STP configuration, including any extra fields or reporting required.
- Strengthening internal controls, segregation of duties and audit trails.
If you are concerned about penalties and ATO scrutiny under the new rules, our article “Payroll Compliance Under Payday Super: 10 Things Employers Can’t Ignore” explains the key obligations, common risk areas and how to tighten your payroll controls.
Payroll Frequency – Should You Change How Often You Pay?
For some employers, Payday Super is prompting a rethink of how often staff are paid. Changing from weekly to fortnightly, or fortnightly to monthly, can affect:
- Administration costs and processing workload.
- Employee engagement, expectations and financial wellbeing.
- Cash flow smoothing and predictability.
More frequent payroll processing means more frequent SG contributions, approvals, reconciliations and bank runs. Less frequent payroll may reduce admin but could be unpopular with staff.
Our article “Payday Super And Payroll Frequency: Should You Move To Monthly Pay?” looks at the impact of monthly payroll cycles under the new super rules and outlines the pros and cons for different types of business.
Processes, Systems, Governance And People
Payday Super is not just a payroll tweak. It is an organisation-wide change that touches HR, finance, rostering, workforce planning, IT and governance.
Key areas to consider where changes might need to be implemented:
- Process mapping: identify where timing, controls and responsibilities need to change.
- Systems and integrations: check whether your payroll, accounting software and clearing house can support the new Super rules and requirements.
- Governance and reporting: clarify roles, responsibilities and sign-off points for SG obligations and update policies and procedures to ensure Payday Super compliance.
- People and training: ensure payroll, HR, finance and line managers understand the new timeframes and schedule appropriate training.
To understand these operational changes in more detail, see “Payday Super and Payroll Processes: The Changes You Need To Plan For”.
Immediate Steps Employers Should Take
Once you understand the key impact areas, you can move into a structured readiness plan. Think of it as a roadmap from “current state” to “Payday Super ready”.
1. Review your payroll system capabilities
Confirm whether your current payroll software can:
- calculate super in real time
- send STP and SuperStream data instantly
- automate clearing house submissions
If not, you may need upgrades or even a new system.
2. Test end-to-end processing cycles
Before Payday Super goes live, simulate the full process:
- run a payroll
- generate super calculations
- process and reconcile payments
- ensure clearing house turnaround times fit your pay schedule
This helps identify bottlenecks before compliance becomes mandatory.
3. Assess cash flow impacts
Build a revised forecast model that includes more frequent super outflows.
Consider:
- adjusting pay cycles
- setting up dedicated accounts
- negotiating supplier terms
- reviewing internal approvals
4. Update internal processes and controls
Quarterly review cycles will turn into per-pay-run controls.
You may need to update:
- sign-off procedures
- timelines for data entry and timesheets
- onboarding/offboarding checklists
- payroll audit processes
5. Train payroll, HR and finance staff
Everyone involved must understand:
- new deadlines
- new processes
- what needs to happen when
- how errors should be handled quickly
Top Risks and Misconceptions About Payday Super
“We’ll just handle it closer to the start date.”
Waiting until the last minute is risky. Payroll and software vendors will be under heavy demand as the deadline approaches. Early preparation will give you more options and less stress.
“Our payroll system will handle everything automatically.”
Many systems won’t be ready without updates or configuration changes – and some may not support real-time processing at all. It is important to test, not assume.
“It won’t affect our cash flow much.”
For most businesses, the shift from quarterly to weekly/fortnightly payments changes the timing of cash outflows significantly. Without planning, this can lead to pressure on working capital.
“The ATO won’t enforce this straight away.”
With enhanced STP data, the ATO will have immediate visibility of non-compliance. Fines and penalties may be applied consistently once the regime begins.
“Payday Super only affects payroll.”
It affects finance, HR, rostering, workforce planning and treasury. Treat it as an organisation-wide project, not a narrow payroll issue.
FAQs About Payday Super
Payday Super is a change to the superannuation rules that will require employers to pay SG contributions at the same time as salary and wages, instead of making contributions quarterly. Contributions must also reach employees’ super funds within 7 business days after each payday.
The Payday Super rules are scheduled to start on 1 July 2026, giving employers time to prepare, test systems and update internal processes before the new regime begins.
Payday Super will apply to all employers who are required to pay Superannuation Guarantee contributions. It will cover eligible full time, part time and casual employees, regardless of business size or industry.
You will need to pay super each time you pay your employees. If you run payroll weekly, you will pay super weekly. If you pay fortnightly, you will pay super fortnightly. If you pay monthly, you will continue to pay super monthly, but must ensure contributions reach funds within the required timeframe.
Payday Super brings SG payments forward so money leaves your bank account more often. This reduces your ability to use accrued super as a short term cash buffer and makes cash flow forecasting, working capital management and access to finance more important.
Most employers will need to check that their payroll system can calculate SG in real time, send accurate STP data and submit contributions quickly through a clearing house or other service. You may require software upgrades, configuration changes or new integrations so that contributions reach employees’ super funds within the required time.
If you miss a Payday Super payment or contributions arrive late at the employee’s fund, you may be liable for Superannuation Guarantee Charge, interest and penalties. With more frequent data and clearer visibility, late payments are more likely to be detected and acted on.
Need Help Preparing For Payday Super?
Payday Super is more than a rule change. It is a structural shift in how Australian employers manage payroll, cash flow and compliance. Those who act early will transition smoothly. Those who delay may face operational challenges, cash flow disruptions, or compliance risks.
If you would like a tailored Payday Super readiness assessment for your business, get in touch and we’ll walk you through exactly what needs to change. We can help you:
- Model the cash flow impact under different scenarios.
- Review payroll systems, processes and controls.
- Plan and implement the people, system and governance changes you need, well before the deadline.
For help preparing your business for the new super changes give the team at MGI South Qld a call on 07 3002 4800 or contact us online.
Remember to register for our webinar: Payday Super Changes: What Employers Need to Know Before July 2026 which is on Thursday 29 January at 1.00pm (AEST).
We work with businesses across Brisbane, the Sunshine Coast, Gold Coast and throughout SE Qld with all aspects of tax compliance.
