Are you ready for Payday Super? - Simeoni

Are you ready for Payday Super?

From 1 July 2026, the way businesses pay employee superannuation will change. Under new rules, you will be legally required to make employee super contributions with every pay cycle.

See the ATO for detailed Payday Super information. 

Below is a quick overview to help your business prepare.

What’s changing

  • The Superannuation Guarantee (SG) amount is no longer based just on ordinary time earnings (OTE). It becomes 12% of qualifying earnings, which is a new and broader definition that includes OTE plus other payments such as salary sacrifice super amounts.
  • Super contributions must be paid with each pay cycle.
  • Payments must reach your employees’ super funds within seven business days of payday. Extended Due Dates can apply to new employees and out of cycle payments.
  • You can claim a Tax deduction for an amount of Superannuation Guarantee Charge that you pay. Penalties and Interest which relate to failure to pay will continue to be non-deductible.
  • There will be stricter enforcement of super payments under the new system with the ATO monitoring compliance in real time.

What this may mean for your cash flow

If you currently pay super quarterly, you will need to factor super into each pay run.

For example, a $10,000 monthly payroll will now require an additional $1,200 in super contributions ready at the same time.

This does not increase your overall super costs, but it does affect your cashflow.

How to get ready

1. Check your payroll software

Ensure your accounting software can process super payments each pay cycle and integrates with Single Touch Payroll.*

2. Update your cash-flow forecast

Model the impact of more frequent payments and consider the implications for your business.

3. Review your clearing house arrangements

The ATO’s Small Business Superannuation Clearing House closes 30 June 2026. If you use it, you will need to switch to another clearing house before this date. Moving to a new provider may incur additional fees, so please ensure you allow for these costs in your budget.

*Xero and MYOB offer solutions for Payday super. Please review your subscription for further details.

Penalties for late payments

Late Super contributions will attract an updated Super Guarantee Charge, including:

  • daily interest
  • an administration fee (up to 60%, reduced with voluntary disclosure)*
  • additional penalties if not corrected within 28 days. (25% – 50%)

*An extra fee an extra fee may apply for the preparation and lodgement of any voluntary disclosures.

Next steps

Prepare for the upcoming changes now to help ensure a smooth shift to Payday Super and avoid potential penalties.

Refer to the attached factsheets for more details: