Pay Day Super Is Now Law

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Payday super is nearly here: the government’s payday super reform has been made into law, taking effect from 1 July 2026. 

From 1 July 2026, employer super guarantee contributions must reach employees’ respective super funds within 7 business days of payday.  Allowing for processing times, superannuation should be paid at the same time as salary and wages. 

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The Australian Taxation Office intends to focus its compliance efforts on employers failing to pay the minimum super contributions and not taking prompt action to correct issues.  Employers making genuine efforts to comply and resolve issues quickly are less likely to face compliance action. 

Business owners should take steps now to ensure a smooth transition to payday super.  Early action will help businesses stay compliant, manage cash flow effectively, and avoid unnecessary pressure as the date approaches. 

Some practical steps that can be taken now to prepare for 1 July are: 

  • Review payroll cycles: Be aware of your payroll period – weekly pay will require weekly super payments, fortnightly pay will require fortnightly super payments, and so on.  Discuss with your bookkeeper if your payroll cycle is working for you. 

  • Check payroll software: Confirm with your bookkeeper whether your software can manage more frequent super payments. Consider suitable alternatives if required.  

  • Update employee super details: Ensure employee fund information is accurate and current. 

  • Review onboarding process: Confirm with your bookkeeper whether your onboarding process for new employees facilitates timely, accurate and secure collection of super information.  Consider suitable alternatives if required. 

  • Plan for cash flow: More frequent super payments will place greater demand on cash flow.  Your bookkeeper can help you manage cash flow concerns. 

  • Stay informed: Your bookkeeper can provide you with updates from the ATO and Institute of Certified Bookkeepers as the reform progresses. 

Payday super is one of the most significant payroll changes in recent years, and there is limited time to prepare.  The QiBalance Bookkeeping team are here to help employers understand what is coming and plan accordingly.