As you may have heard, the Australian Government is introducing Payday Super, a significant change to how superannuation contributions are managed.
Starting July 1, 2026, employers will now be required to pay their employees’ superannuation on payday, at the same time they pay their salary and wages, rather than as a lump sum on a quarterly basis.
The ATO is also retiring the the good old Small Business Super Clearing House portal (SBCSH) which closes permanently on July 1 2026.
What this means for you:
- Cash Flow Management: You will need to account for superannuation payments in every pay cycle (weekly, fortnightly or monthly). Super now becomes a regular, predictable expense.
- Compliance: Payment patterns will be more visible to the ATO, making on-time payments more critical than ever. Contributions must reach the employee’s fund within 7 business days of payday to avoid penalties and interest.
- Administration: Your payroll software and processes may need updates to ensure seamless reporting via Single Touch Payroll (STP).
- Small Business Super Clearing House: If you’re still using the old Small Business Super Clearing House portal, you need to stop using it well before July 1.
Why is this change happening? The goal is to ensure employees receive their entitlements faster and to allow the ATO to better track non-compliance in real-time.
What happens if I miss a payment? Because payments are tied to payroll cycles, the ATO will have immediate visibility and be able to identify late payments automatically. The Superannuation Guarantee Charge (SGC) will apply if deadlines are missed.
Does this apply to all businesses? Yes, the move to Payday Super is intended to apply to all employers currently required to pay Super Guarantee.
To help you navigate this transition, we have attached a PayDay Super Checklist. We recommend reviewing your cash flow and payroll software settings sooner rather than later to avoid the stress of a last-minute scramble.
If you have any queries on these upcoming changes, please don’t hesitate to contact us.
