INDUSTRY NEWS • 8 DECEMBER 2025 • 1 MIN READ
Payday Super will demand faster payments and stronger cashflow planning
From 1 July 2026, the way Australian employers pay superannuation will fundamentally change. Under the new Payday Super system, employers will no longer follow quarterly payment schedules. Instead, Super will need to align with each pay cycle.
These changes will have major cashflow and compliance implications for businesses, particularly smaller-sized operations. Here’s what’s changing and how to prepare.
How quarterly super currently works and why it has given businesses breathing room
The current structure has long provided a practical buffer for small businesses, allowing them to process wages, wait for incoming revenue, and manage fluctuations in cashflow before meeting the Super Guarantee (SG) deadline. The three-month window also absorbs delays caused by late invoices, seasonal downturns, and administrative catch-up.
That quarterly cycle has been an essential part of maintaining stable cashflow. However, that buffer will disappear under Payday Super.
What's changing from 1 July 2026
Super must align with each pay cycle
From the start date, employers will no longer wait until the end of the quarter to pay SG. Super will need to be paid in line with each payroll cycle.
The new seven-day fund-receipt requirement
The most significant compliance change is the seven-day rule, which requires the employee's super fund to receive the super contributions within seven days of payday.
If a clearing house takes several days to process a contribution, that delay still counts against the employer. This shortens the deadline considerably.
The four-month super hit
The transition will be financially demanding.
Employers will need to pay:
- The full June quarter (three months), and
- July 2026 super under Payday Super
This creates a one-off obligation to fund four months of super almost all at once. Businesses operating with tight margins may feel this cashflow pressure the most.
Late payments
Once Payday Super begins, late payments trigger immediate compliance actions:
- A compulsory SG statement
- Interest charges applied by the Australian Taxation Office
- Penalties for non-compliance
- Loss of tax deductibility for the late super
This reform also changes the consequences of mistakes. Under the quarterly cycle, errors in hours, pay rates, or super calculations could be corrected later without penalty. However, under the new rule any error that delays the super payment risks missing the seven-day window.
How to prepare for Payday Super
- Plan early for the four-month transition cost: Start reserving funds for the June 2026 quarter and July's payday super to prevent cashflow strain.
- Model superannuation timing into cashflow forecasts: Treat super like wages and assess whether payment terms or billing habits need to be adjusted.
- Check processing times for your clearing house: Some take several days, which reduces the already tight seven-day window.
- Standardise how hours or changes are submitted: Having a clear process reduces the errors that can delay super payments.
- Choose pay dates that provide enough time for payment to reach the fund: Mid-week pay cycles often give more breathing room than Friday pay runs.
- Make sure the person handling payroll understands the new rules: Whether you manage payroll yourself or have an admin assistant, ensure the person responsible understands the new deadlines and consequences of late payments.
- Review your payroll software setup: Ensure rates, super categories, pay items, and employee fund details are correct so super calculates accurately.
- Watch for updates from your payroll software: Systems will change to support Payday Super, but employers remain responsible for compliance. Keep an eye out for any updates on system upgrades or required changes within your payroll system.
Payday Super represents one of the most significant changes to employer obligations in recent years. The seven-day requirement and the four-month transition will change how small businesses manage cashflow and compliance. With early planning and a simple, consistent process, employers can avoid SG Statements, penalties, and unnecessary financial strain, and step confidently into the new system.
Vanessa Atzeni
Lead Accountant
With over 25 years of experience, I'm dedicated to providing top-notch business advisory and taxation services to clients. Outside of work, I find joy in travel, hiking and listening to music.
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