From 1 July 2026, employers will be required to pay superannuation contributions at the same time they pay employees’ wages. For many small businesses, this is a big shift away from the familiar quarterly super cycle, and it’s worth getting across now so you can avoid cashflow surprises and compliance issues.
What’s changing (in plain English)
Under the new rules, you’ll need to:
- Pay super on payday — in line with your pay cycle (weekly, fortnightly, monthly).
- Make sure contributions are received by the employee’s super fund within 7 business days of payday.
- Be aware there are some exceptions, including a longer timeframe for the first super payment for a new employee (which must be paid within 20 business days of the first lot of wages being paid).
The key message: super becomes a “pay run” obligation, not a “quarterly admin task”.
What this means for small business owners and people leaders
Even if your payroll is outsourced, this change will likely affect your day-to-day operations:
- Cashflow planning: paying super more frequently may require tighter cash management.
- Payroll processes and systems: you may need to adjust how payroll is processed, approved and reconciled.
- Risk management: late super can trigger additional charges, and it may also create issues under workplace laws or industrial instruments.
What you should do now
A practical approach is to start preparing now:
- Talk to your accountant or bookkeeper about how Payday Super will affect your payroll cycle, cashflow and reporting.
- Review your payroll software and processes (including who approves pay runs, when super is processed, and what “cut-off” times apply).
- Check the ATO guidance and use their resources (fact sheets, checklists and updates) to make sure you’re ready. You can access these resources HERE.
This article includes general information only, it is not formal or legal advice; if you’re unsure how these changes apply to your circumstances, seek tailored advice from your accountant/bookkeeper or a registered tax professional.
