Payday Super: What Employers Need to Know Before 1 July 2026

Superannuation rules in Australia are changing, and from 1 July 2026 employers will need to pay super at the same time they pay wages. This shift, known as Payday Super, affects every business regardless of size, and it’s especially relevant for small business owners looking to stay compliant and maintain healthy cash flow.

What Is Payday Super?

Payday Super means employers must send superannuation contributions to an employee’s super fund within seven days of each payday rather than quarterly. This change aims to reduce unpaid super and help employees build more consistent retirement savings.

To support businesses through the transition, the ATO has released a draft guideline (PCG 2025/D5) that outlines how compliance will be managed during the first year. Employers who act quickly, make genuine attempts to comply, and correct mistakes early are more likely to receive assistance rather than penalties.

Many business owners find it helpful to work with a trusted BAS Agent or local bookkeeper who can interpret these updates and guide them step by step.

How Payday Super Works

Here’s what the new process looks like in practice:

• Super must be paid within seven calendar days of payday.

• The timing aligns with your payroll cycle.

• Weekly pay means weekly super.

• Monthly pay means monthly super.

  
  

This is one of the most significant superannuation changes in recent years and will influence your payroll software, reporting habits, and cash flow planning.

What Employers Can Do Now to Prepare

To get ahead of Payday Super, here are the key steps to take:

1. Review Your Payroll Cycle

Consider whether your current pay cycle still suits your business or whether a different cycle would support smoother cash flow.

2. Check Payroll Software Compatibility

Not all software platforms are ready for Payday Super. A payroll specialist or BAS Agent can help you confirm whether your system will need an update.

3. Update Employee Super Information

Making sure all super fund details are accurate and active avoids delays and reduces admin down the track.

4. Forecast and Plan Cash Flow

More frequent payments require earlier cash flow planning. Now is a great time to start forecasting, especially for businesses with tight margins.

At Vivid, we support businesses through every stage of these changes. As a registered BAS Agent we help employers:

• Review and refine payroll cycles

• Update employee superannuation details

• Ensure payroll software is Payday Super ready

• Build cash flow plans that support more frequent super payments

• Stay compliant with new employer obligations

Starting early gives you clarity and control. If you’d like help reviewing your payroll setup, planning cash flow, or understanding exactly how Payday Super will affect your business, our team is here to guide you every step of the way.

Disclaimer: This article is intended to provide general guidance and is not specific advice. We encourage you to seek tailored advice for your circumstances.