Proud partners of Carlton FC
New Payment Frequency
Employers must pay superannuation contributions at the same time as salary and wages.
The SBSCH Closure
The ATO’s Small Business Superannuation Clearing House (SBSCH) will be retired.
Stricter Penalties
The ATO will have increased visibility over non-compliance, with stricter penalties for late or missed payments.
WHAT’S CHANGING
What is Payday Super?
Payday Super is a new legislation that means employers must pay their employees’ super guarantee (SG) contributions at the same time as their wages. This is set to come into effect from July 1st, 2026.
For most Australian businesses, this change shifts super payments from a quarterly schedule to a monthly, fortnightly, or even weekly cycle. Previously, employers were only required to pay super at least four times per year, although they could choose to contribute more frequently.
The update is designed to help employees receive their super sooner and make it easier to track contributions.
For employers, it means lifting compliance standards and streamlining payroll processes.
With this change in mind, employers will need to adjust their payroll cycles and payroll software to include super payments in every pay run. These contributions must also reach the employee’s super fund within seven business days.
BUSINESS IMPACT
Key considerations for your business
|
Action |
Impact |
|
Employment payment needs to be sent to the super fund within seven days of payment. |
This applies to companies, sole traders, trusts and partnerships. |
|
Employers have seven business days to rectify issues and re-submit. |
Return of funds needs to be actioned within three business days of receipt. |
|
The Super Guarantee Charge (SGC) will align with the new payment frequency. |
Penalties will be in place for missed, late or underpaid super. |
|
SBSCH will be retiring. Employers will need to switch to Payday Super compliant software. |
Employers cannot use this ATO Service moving forward - before the deadline hits. |
BUSINESS IMPACT
Why these changes matter
The changes to Payday Super legislation will fundamentally alter the rhythm of your cash flow and compliance processes. This will affect not only your payment timelines but also your financial responsibilities as a business. There are a few important factors to keep in mind when handling payroll:
STAY COMPLIANT
“Received by” payment rule
Contributions must be received by the employee’s super fund within 7 business days of payday, not just “sent” by you. If your current clearing house takes 3-5 days to process payments, you are at high risk of non-compliance before you even start.
AVOID SEVERE PENALTIES
Penalties for “Day 1” lateness
The grace period is effectively gone. Missing the 7 business day window — even by 24 hours — triggers the new Superannuation Guarantee Charge (SGC). This includes daily compounding interest and administrative “uplifts” of up to 60%.
PLAN FOR CHANGE
Increase in admin
Manual processing is no longer viable. Performing a manual bank transfer or file upload every week can double or triple your payroll admin time.
MANAGE CASH FLOW
End of quarterly buffer
You can no longer use superannuation accruals as working capital for up to three months. Cash must leave your account every pay cycle (weekly or fortnightly), requiring a stricter, real-time cash flow strategy.
PREPARATION & NEXT STEPS
How to prepare for Payday Super
1 July 2026 is the deadline for Payday Super changes, but your payment systems need to be ready well before then. Luckily, QuickBooks Payroll is Payday Super ready right now. All you need to do is add HeroClear or Beam as your Super fund clearing house option.
Powered by Employment Hero’s industry-leading technology, QuickBooks Payroll is designed to save you time
and simplify all your payroll tasks. Run payroll from start to finish, all without leaving QuickBooks.
Make the transition as smooth as possible,
all you need to do is:
Check all current employee data
Make sure all information is correct in your Payroll system to avoid future delays or ATO issues.
Add HeroClear or Beam
Already connected to your QuickBooks account, HeroClear or Beam will ensure Super contributions are made on time.
Train your employees
Ensure your team understands the Payday Super changes, alongside timelines and compliance requirements.
How QuickBooks Payroll makes super payments painless
No manual data entry
Payroll and super under one roof
Fast, error-free payments
Ready for smarter payroll? Let's chat.
Our QuickBooks experts will help you prepare for Payday Super with QuickBooks Payroll, our all-in-one payroll processing solution for small businesses.
Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make.
Award Winning Accounting Software
