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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.
THE CHANGES
What is Payday Super?
Payday Super is a government change that requires employers to pay their employees’ super guarantee (SG) contributions at the same time as their wages.
For most Australian businesses, super payments must be paid 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.
This helps employees receive their super sooner and makes it easier for them to track contributions.
Employers may need to review their compliance standards and streamline payroll processes.
Employers will need to review 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.
THE 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 - an alternate super fund clearing house may be required. |
THE IMPACT
Why these changes matter
Payday Super legislation fundamentally alters the rhythm of businesses' 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.
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 Superannuation Guarantee Charge (SGC). This includes daily compounding interest and administrative “uplifts” of up to 60%.
PROCESS UPDATES
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.
WHAT YOU NEED TO DO
Payday Super with QuickBooks
Luckily, QuickBooks Payroll powered by Employment Hero is Payday Super ready. All you need to do is add HeroClear or Beam as your Super fund clearing house option.
QuickBooks Payroll is designed to save you time
and simplify all your payroll tasks. Run payroll from start to finish, all without leaving QuickBooks.
What you need to do
Check 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.
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