In November 2025, the Federal Government’s Payday Super legislation passed both houses of Parliament. Once in effect, this change will require employers to pay superannuation at the same time as employees’ wages.
What’s changing for employers from 1 July 2026?
From 1 July 2026, employers will need to be aware of the following obligations:
Superannuation must be paid at the same time as employees’ wages or salary.
Employees’ Super Guarantee (SG) contributions must be received by their super fund no later than 7 days after payday.
The Super Guarantee Charge (SGC) regime will be strengthened, with tougher penalties applying where super is not paid in full or on time.
For new employees, employers will have 20 business days (starting the day after wages are paid) for the employee’s super fund to successfully receive the first super contribution.
The ATO Small Business Super Clearing House (SBSCH) will close for all employers. Businesses currently using the SBSCH will need to put alternative payment arrangements in place.
How to prepare for this:
Payroll systems – Ensure your payroll software can process super contributions in line with each pay cycle.
Clearing house arrangements – Many large super funds offer their own clearing house services.
Implement a cash fllow strategy – The shift from quarterly to per-pay super payments can significantly impact cash flow. Consider the following strategies:
Set aside funds each pay run: Start allocating funds immediately to avoid shortfalls.
Separate accounts: Use a dedicated account to improve control and visibility of super payments.
Review the ATO Product Register – The ATO maintains a Product Register of SuperStream-certified software and clearing house providers.
Suntax can help! Need assistance preparing your Xero file for Payday Super? Click the button below and one of our team will be in touch shortly.
Please note: If your Payday Super processes are not in place by 1 July 2026, the Australian Taxation Office may apply penalties under the Super Guarantee Charge (SGC) provisions. These penalties may be 25% or 50% of the unpaid SGC, depending on individual circumstances.
In November 2025, the Federal Government’s Payday Super legislation passed both houses of Parliament. Once in effect, this change will require employers to pay superannuation at the same time as employees’ wages.
