Prepare for Payday Super

From 1 July 2026, employers will be required to pay superannuation at the same time as salary and wages, rather than quarterly. This means super will need to be paid weekly, fortnightly or monthly, depending on your pay cycle.

Importantly, the super contribution must be received by the employee’s super fund within 7 days of payday.

What does this mean for you?

1. Payroll systems

Ensure your payroll system is capable of handling Payday Super requirements.

2. Employee super details

Make sure all employee super fund details are collected, accurate, and verified promptly to avoid delays.

3. Increased ATO visibility and compliance

Additional reporting will occur through the existing Single Touch Payroll (STP) system. This gives the Australian Taxation Office (ATO) real time visibility, making late or missed payments easier to identify.

Any late or unpaid super will attract the Super Guarantee Charge (SGC), which effectively operates as a penalty and results in additional cost and administration.

4. Cashflow impact

With less time to pay super, cashflow pressures are likely to increase.

For many business owners, this change comes on top of other challenges. Payday Super follows the non deductibility of the ATO’s General Interest Charge (GIC) on late tax payments, which compounds daily.

As at today, the annual GIC rate is 10.78%, which equates to an effective rate of 14.37% for companies taxed at 25%, given the interest is not tax deductible.

Our advice

While it is important to ensure your systems are ready for Payday Super, it is equally important to review your cashflow requirements.

Given the high cost of ATO debt, exploring alternative lending or finance options may be a more cost effective solution.

We are more than happy to assist with cashflow planning, finance reviews, and payroll system support. Please do not hesitate to contact us if you would like help preparing for these changes.