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Payday Super: What you need to know

Learn how to prepare your small business for the changes to super that are coming in 2026.

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What is Payday Super?

Why the change in super rules?

Impact on your business

Key payday super dates

Penalties with Payday super

Changes to STP reporting

This new regulation, Payday Superannuation, is designed to simplify compliance and protect employeesโ€™ retirement savings. At Payroller, weโ€™re here to make this transition seamless for small businesses with tools, resources, and guides tailored to your needs. Find out whatโ€™s been announced by the ATO and more below.

What is Payday Super?

Payday Super aligns superannuation payments with employeesโ€™ pay cycles instead of the current quarterly schedule. Starting 1 July 2026, all employers will need to pay superannuation at the same time as wages.

This means:

  • Superannuation payments are due within 7 days of payday.
  • Increased visibility for employees to track contributions.
  • Uplifted penalty rates on employers for late payments.

The Payday Super legislation makes employers liable for the super guarantee charge (SGC) unless employee superannuation funds are paid within 7 days of payday.

Why the change in superannuation rules?

Announced on 18 September 2024, Payday Super seeks to protect employeesโ€™ retirement savings by requiring employers to make super payments more frequently and transparently. This reform โ€“ linking super payments to every payday โ€“ addresses the problem of unpaid or late super, which plagues millions of Australians. It also gives workers better control over their entitlements and allows them to monitor contributions in real-time.

The move benefits employers by making it easier to comply, lessening long-term liability, and building greater employee confidence, making super much more stable and equal for all.

How Payday Super will affect your business

Key impacts for employers

  1. More frequent payments
    Super contributions will align with every pay cycle. Late payments will subject you to paying SGC.
  2. Updated super guarantee charge framework
    SGC will include outstanding SG shortfall, notional earnings, and admin fees. This fee will be tax deductible.
  3. SuperStream efficiency
    Contributions will be allocated or returned within 3 business days with improved error messaging to report payment issues promptly.
  4. New Single Touch Payroll (STP) requirements
    Ordinary time earnings (OTE) and total super liability will be included in STP reports for accurate SG calculations.

Why it's important

  • Youโ€™ll need to manage cash flow more carefully to ensure timely payments.
  • Payroll systems need to prepare for the new superannuation rules to avoid late payment penalties.
  • Businesses can build trust with employees by ensuring their entitlements are met.
  • Staying compliant with government regulations and ATO oversight is key!
Master payday super and superannuation management with Payroller

How Payroller can help

Using an automated payroll solution to make accurate calculations in every pay run will make compliance effortless. Payroller has you covered with tools designed to simplify Payday Superannuation for your business:

  • Simplified super calculations: Keep your super contributions aligned with pay cycles effortlessly.
  • Timely compliance alerts: Stay on top of your obligations with reminders to make timely payments.
  • Expert guidance: Access blogs, videos, and step-by-step guides to easily navigate Payday Super.
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Key Payday Superannuation dates

2 May 2023

The Australian Government announced Payday Superannuartion.

1 July 2025

Superannuation Guarantee rate increases to 12%.

1 July 2026

Payday Super regulations take effect.

What happens when you fail to comply with Payday Super?

Employers who do not fully pay super contributions within 7 days of wages will be liable for SGC under the new framework. Launching alongside Payday Super, SGC will include the standard SG shortfall and the following updated components:

  • Daily interest on the SG shortfall is based on a compounding general interest charge rate.
  • An administrative fee that adds up to 60% to the SG shortfall amount.

After the SGC is assessed, the ATO may still charge extra interest and penalties if the contribution owed isn’t paid in full. However, the SGC will be tax-deductible, making the tax implications for paying employees’ superannuation consistent.

How Payday Super will affect STP reporting

With the new superannuation legislation, employers will need to report both OTE and total super liability in their STP submissions. This change means that wages and contributions are reported to the ATO every time you process payroll.

Using an STP-compliant software like Payroller is essential for automating these reports and minimising the risk of errors. This will help streamline your payroll processes and make it easier to meet your obligations under the updated framework.

The latest resources to help you manage superannuation

How to pay superannuation
Payroll Management

How to pay superannuation for Australian businesses

Home Superannuation is a vital part of running a business in Australia. If you have employees, you must make regular super contributions on their behalf. ...
Read More โ†’
Understanding the super guarantee changes in 2024
ATO and Fair Work Updates

Navigating the rise in Australia’s Superannuation Guarantee in 2024: What you need to know

Home Superannuation will be changing a lot in the next few years. Contributions have increased to 11.5% from 1 July 2024, and it’s set to ...
Read More โ†’
Wage and super payments in Payroller
Superannuation Resources

How to submit a super payment

Learn how to submit a super payment via BEAM Super clearing house in Payroller
Read More โ†’

Get ready for Payday Super with Payroller

Donโ€™t wait until the last minute to adapt to Payday Super.
Start preparing with Payrollerโ€™s easy-to-use tools and resources.

  • 30-day money back guarantee
  • 7-day FREE trial
  • No contract period^

Create your free account now.

*By clicking โ€œTry For Freeโ€œ, you agree to our terms of services and privacy policy.

Make super compliance super simple with Payroller

Michelle Hogan
If you are a small business and with one employee, this software is fabulous. All you need, on your phone, access from any computer. Calculates everything for you. Can’t say enough good things about it.
Caroline Sandstrom
Very easy to set up and use and for me who is limited on IT knowledge, thats a bonus
De Waal E.
Really simple to use for a small business such as mine and with just enough features on the plan I have for my needs. Been on it since STP took off a couple of years ago and highly recommend it.
Lucky Dog Australia
Payroller has made setting up our payroll simple! Like so simple anyone can do it! Definitely recommend it!
Kenneth O'Leary
Easy to use and fantastic for a small business with a few employees.

Payday Superannuation FAQs

Payday Super is a new requirement starting on 1 July 2026. Until then, employers can continue to make super contributions on a quarterly basis, but they should begin preparing for the transition now.

For Payday Super, employers should review and update payroll systems to ensure compliance with the new requirements. An automated payroll system like Payroll can help manage the new contribution schedule efficiently. In the meantime, you should also review your cash flow to ensure you have available funds for these more frequent super payments.

It will be essential to inform employees of Payday Super changes and how their superannuation contributions and balances will be impacted. Working with HR or payroll experts can make the internal transition smoother.

Finally, stay informed about any updates to legislation. Take these steps now and be well-prepared for the new superannuation rules on 1 July 2026.

No, the SBSCH will be decommissioned from 1 July 2026. Employers currently using this service will need to transition to alternative solutions that are fit-for-purpose for managing payday super contributions, such as Payroller.

The ATO will enforce stricter penalties under an updated SGC framework, including:

  • Daily interest on late payments.
  • Administrative uplift charges of up to 60% of the unpaid amount.
  • Additional penalties will be applied if SG charges remain unpaid after assessment.

Yes, there are limited exceptions:

  • Contributions for a new employeeโ€™s first two weeks of pay can be delayed.
  • Small and irregular payments outside the normal pay cycle may align with the next regular payday.

Businesses should seek to do the following to prepare for Payday Super:

  • Simplify compliance with automated solutions to align super contributions with your payroll process and stay on top of your obligations.
  • Audit your payroll system to ensure itโ€™s ready for the 2026 changes.
  • Follow updates from Payroller and the ATO to stay ahead.
ยฉ 2024 Payrollerโ„ข๏ธ
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