Payday Super From 1 July 2026: What Employers Need to Do
Payday Super From 1 July 2026: What Employers Need to Do
Short answer: from 1 July 2026 you must pay super guarantee (SG) at the same time as salary and wages, not quarterly. The fund must receive the contribution within 7 business days of payday - miss it and you can be liable for a new super guarantee charge. This is the biggest change to employer super obligations in years, and if you run payroll in Mortdale or anywhere across the St George area, now is the time to get your systems and cash flow ready.
This change is law. The Treasury Laws Amendment (Payday Superannuation) Act 2025 and the Superannuation Guarantee Charge Amendment Act 2025 have passed Parliament, with the supporting regulations finalised in 2026. A few finer operational points are still being settled in ATO draft guidance (see the flags below), but the core rule and start date are locked in.
What is changing on 1 July 2026
Right now you can pay SG quarterly, up to 28 days after the end of each quarter. From 1 July 2026 that goes away. Instead:
- You pay SG on each payday, at the same time as salary and wages.
- The contribution must be received by the employee's fund within 7 business days after payday (longer timeframes can apply in limited cases, such as some new employees).
- SG is calculated as 12% of qualifying earnings.
The 12% rate is the current SG rate for 2025-26 and is the final scheduled increase, so it is the rate you carry into payday super.
Why it changed
The aim is simple: get super into people's accounts sooner so it compounds for longer, and make unpaid or late super easier to spot. Under quarterly rules, a gap could sit unnoticed for months. Paying on payday closes that gap and lines super up with the wages it relates to.
The new super guarantee charge for late payments
If your contribution does not reach the fund in time, the ATO can apply a new super guarantee charge (SGC). Based on ATO guidance, it has four parts:
- SG shortfall - the super you should have paid.
- Notional earnings - interest on the shortfall, calculated using the general interest charge rate and compounded daily.
- Administrative uplift - an initial amount of 60% of your total shortfall and notional earnings.
- Choice loading - up to 25% of the contribution where choice-of-fund rules were not followed.
Importantly, the SGC is not tax deductible, and you cannot deduct late-payment interest either. A missed payday super deadline is far more expensive than the super itself, so the safe habit is to pay early and confirm receipt.
The Small Business Superannuation Clearing House is closing
If you use the free Small Business Superannuation Clearing House (SBSCH), note that it is closing as part of these reforms:
- New users have been unable to register since 1 October 2025.
- Existing users can keep using it until 11:59 pm AEST on 30 June 2026.
- From 1 July 2026 it closes permanently.
Two action items: choose an alternative payment method well before 1 July 2026, and download your SBSCH super records before the service closes.
How to prepare: a checklist for employers
Use the months between now and 1 July 2026 to get ready, rather than scrambling at changeover.
- Talk to your payroll software provider. Confirm their product will support payday super and STP reporting on the new timetable, and find out when the update lands.
- Choose your super payment solution. If you rely on the SBSCH, line up a commercial clearing house or your software's built-in super payment feature now, and test it before July.
- Review your cash flow. Super becomes a per-payday outflow rather than a quarterly one. Map out the impact, especially if you currently hold SG back until quarter end.
- Tighten your processing time. Build in a buffer so contributions reach the fund within 7 business days. Allow for processing lags, weekends and public holidays - submit a few days early.
- Check employee fund details. Make sure you hold correct fund and member details so contributions are not bounced back.
- Confirm choice-of-fund compliance. Getting this wrong can trigger the 25% choice loading.
- Reconcile super with wages each pay run. Treat super as part of every payday, not an afterthought.
A note for Mortdale and St George small businesses
Many of the small businesses we work with around Mortdale, Hurstville and the wider St George area run lean payroll setups - often a single bookkeeper or the owner doing pays after hours. Going from four super payments a year to one every pay run is a real change to both routine and cash flow. The good news: with the right software and a simple buffer built into your process, payday super becomes business as usual. If you would like a hand, our bookkeeping and payroll team can walk through your setup, and our business advisory service can help you plan the cash-flow side. For broader year-end housekeeping, see our EOFY checklist for small business.
Frequently asked questions
Does payday super mean I pay super every single payday? Yes. From 1 July 2026, SG is paid on each payday alongside wages, and the contribution must reach the employee's fund within 7 business days of payday.
What happens if the payment is a day or two late? If the fund does not receive the contribution within 7 business days, you can be liable for the new super guarantee charge, which includes the shortfall, notional earnings, an administrative uplift and possible choice loading. The SGC is not tax deductible. Paying early is the safest approach.
I use the free SBSCH - what do I do now? The SBSCH closes permanently on 1 July 2026 (existing users have until 11:59 pm AEST on 30 June 2026). Choose an alternative super payment method before then and download your records from the SBSCH while you still can.
Get ready with confidence
Payday super is a manageable change with a bit of planning. If you want your payroll, software and cash flow checked and set up before 1 July 2026, book a callback through our contact page or call MJE Business Services on (02) 9580 1167. We will help you make the switch smoothly.
This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.
Sources (ATO)
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