Payroll
6 min read
Payday Super Explained: What Changed for Employers on 1 July 2026
Super now has to reach your employees' funds within seven business days of each payday. Here's what Payday Super means for small businesses and how to stay compliant.
For years, most employers paid super quarterly, 28 days after the end of each quarter. From 1 July 2026, that changed. Under Payday Super, super has to be paid alongside wages, and it has to reach the fund within days.
Quick answer: for paydays on or after 1 July 2026, employer super contributions must be received by the employee’s fund within 7 business days of payday (20 business days for a new employee’s first contribution). The super guarantee rate is 12%. Late payments now trigger an ATO-assessed charge.
What actually changed
Before 1 July 2026 | From 1 July 2026 | |
|---|---|---|
When super is due | 28 days after each quarter | Received by the fund within 7 business days of payday |
New employees | Same quarterly deadline | 20 business days for the first contribution |
What counts | Ordinary time earnings | Qualifying earnings, including salary sacrifice |
If you’re late | Employer lodges an SG statement | ATO assesses the super guarantee charge |
Clearing house | Small Business Superannuation Clearing House available | SBSCH closed on 1 July 2026 |
The law behind it, the Treasury Laws Amendment (Payday Superannuation) Act 2025, passed in November 2025. The key detail is that compliance is measured by when the fund receives the money, not when you send it, so allow for processing time.
What it costs to be late
If contributions arrive late, the ATO can assess a super guarantee charge made up of the shortfall, notional earnings, an administrative uplift and, where choice-of-fund rules weren’t followed, a choice loading. Further penalties can apply if the charge isn’t paid on time. The ATO has said the first year is a transition period focused on employers making genuine efforts, but that’s not a reason to leave it.
What small businesses should do now
Check your payroll software. Xero, MYOB and QuickBooks payroll can process super with each pay run. Make sure it’s switched on.
Replace the clearing house. If you used the Small Business Superannuation Clearing House, you need a new way to pay, usually through your payroll software.
Check employee fund details. Wrong or missing fund details are the most common cause of late payments.
Plan your cash flow. Super now leaves your account every pay cycle, not once a quarter. Budget for it weekly or fortnightly.
Reconcile super every month. Catch rejected contributions early, before the deadline passes.
How we help
Payroll and super are included in our fixed monthly fee for businesses with staff. We run pay runs, report through Single Touch Payroll and make sure super goes out on time, every time. Answer three questions to get your fixed monthly quote.
This article is general information, not personal advice. Check the ATO website for the latest rules, or talk to your BAS agent or accountant about your situation.