The emergence of Payday Super brings concerns of the small business owner juggling wages, sick leave, and taxes. Suddenly, you’re facing a ticking clock on superannuation payments. Miss the deadline, and the fines could put you out of business. This is the reality for thousands of Australian small businesses as the ATOโs new Payday Super reforms get closer.
From 1 July 2026, the way you pay superannuation will change. Instead of the current quarterly schedule, you will need to pay super at the same time as you pay your employees’ salary and wages. This new, tight deadline, combined with the shutdown of the ATO’s super clearing house, is creating a perfect storm for employers who are not prepared.
The new 7-day super nerve-wracking Super deadline
The biggest change is the new 7-day deadline for super payments. Thatโs right, you’ll have just one week to make a super payment to an employee’s fund after you pay them their wages. This is a massive shift from the current quarterly schedule and creates a very tight window, especially around public holidays.
The reforms also change how you report earnings to the ATO. A new concept called ‘Qualifying Earnings’ (QE) will come into effect. QE includes all payments that are currently considered Ordinary Time Earnings (OTE), plus other amounts that were not included before, such as all commissions.
Businesses have to stay prepared to handle the financial risks and compliance burdens
Missing this new deadline, even by a few days, can lead to serious consequences. Small businesses could face big penalties, non-deductible fees, and daily interest charges. For some, a single mistake could lead to financial strain or even insolvency. You could also lose employee trust if contributions are late or incorrect.
The new QE rules will also require a large education effort for employers and a significant change to many payroll systems. Many businesses have a simple method for calculating super, but the new rules will force a more specific breakdown of what is and isn’t included. Getting this wrong could lead to incorrect Super Guarantee Charges (SGC), which can devastate a small business.
“The Payday Super changes arenโt just a simple update to the timing on Superannuation payments,” says Ryan Gledhill, Payrollerโs Product Manager. “Businesses will need to ensure that their employee details are maintained and updated regularly to reduce the risk of super contributions being rejected, especially with the reduced payment deadlines. They will also need to think about their cash flow and how they will ensure the funds are available for contributions each pay run. Once these changes become law, businesses need to make sure that their payroll systems are Payday Super-ready.”
With the ATOโs super clearing house shutting down, you will have to find a new system to process payments. Switching channels can be tricky and could risk compliance gaps. The time it takes for super funds to return unallocated payments is also being reduced from 20 to three business days. This could lead to an increase in rejected payments and a flood of correction notices from the ATO.
If you pay a large amount to the wrong fund, you might have to pay again within 7 days, even if you haven’t received the refund from the first payment.
Making the shift simple with the right payroll software
The good news is that preparing for these changes doesn’t have to be a nightmare. The key is to move away from old, manual processes and use a modern payroll software that automates everything for you. A system like Payroller is designed to make the shift to Payday Super simple.
Instead of managing a large lump-sum payment every few months, Payroller helps you turn super into a smaller, ongoing expense, which can make budgeting easier. It automates super calculations for every pay run, so you don’t have to worry about the new QE rules or making a mistake. You can also process super payments directly through the platform, eliminating the need to use a separate clearing house.
Navigating these reforms can feel overwhelming. With Payroller, you can get ahead of these changes now. We’re here to help you reduce admin stress and ensure you are always on top of your compliance obligations.