What Is Changing

From 1 July 2026, Payday Super ends the long-standing practice of paying superannuation guarantee contributions quarterly, replacing it with a requirement to pay super on every payday and to have those contributions received by the employee’s fund within 7 business days. For many small business employers, this will require real changes to payroll processes, cash flow planning, and in some cases the software or clearing house used to make super payments.

Under the current rules, employers have until the 28th day after each quarter ends to pay super. From 1 July, that buffer disappears entirely. Super becomes a real-time payroll obligation, calculated and paid every pay cycle, whether weekly, fortnightly, or monthly. The ATO will also be matching Single Touch Payroll (STP) data against super fund receipt data in near real time  meaning the ATO will know almost immediately if a contribution is late.

The Penalties for Getting It Wrong

If contributions do not reach an employee’s fund within 7 business days of payday, the super guarantee charge (SGC) automatically applies. The SGC is assessed by the ATO either following a voluntary disclosure statement lodged by the employer, or on the ATO’s own initiative. It includes notional earnings (interest compounding daily at the general interest charge rate) and an administrative uplift of up to 60% of the shortfall plus notional earnings, which can be reduced by a clean compliance record and/or timely voluntary disclosure.

From 1 July 2026, penalties for unpaid SGC are 25% or 50% of the unpaid SGC (depending on prior penalty history), applying if the SGC remains unpaid 28 days after assessment. The 7-day window extends to 20 business days for the first contribution to a new employee’s fund, or the first contribution to a new fund when an existing employee changes funds.

Three Things to Check Right Now

• Check your payroll software. Confirm with your provider that their system is updated for Payday Super from 1 July. Most major providers Xero, MYOB, Employment Hero, KeyPay are ready, but you need to confirm your specific version and settings are configured correctly.
• Check your clearing house. The ATO’s free Small Business Superannuation Clearing House (SBSCH) is closing. If you currently use it, you must transition to a SuperStream-compliant alternative before 1 July. Do not leave this until the last week.
• Check your cash flow. Paying super every pay run instead of quarterly means cash leaves your account far more frequently. If your business relies on the quarterly super buffer to manage cash flow, you need to plan for this now.

The shift to Payday Super requires action before 1 July, your payroll software, clearing house arrangements, and cash flow all need reviewing now. Please get in touch so we can make sure everything is in order before the first pay run under the new rules.

t: +61 7 3177 4120
e: advisors@hksrussell.com

Posted on June 15, 2026 by Charisse Russell - Articles