The ATO is continuing to modernise Australia’s superannuation system, with Payday Super set to significantly change how and when superannuation contributions are paid. While the change may seem straightforward, it will require businesses to rethink payroll processes, cash flow management and compliance practices.

What is Payday Super?

Under Payday Super, employers will be required to pay superannuation contributions at the same time as salary and wages are paid, rather than quarterly. This means super will become a real-time payroll obligation, closely aligned with each pay run. The aim is to improve retirement outcomes for employees by ensuring super is paid more frequently and on time, while also increasing transparency and reducing unpaid super.

Why This Matters for Businesses

For many businesses, quarterly super payments have been built into existing cash flow cycles. Moving to Payday Super means:

• Super payments will occur more frequently
• Payroll processes will need to be accurate and timely
• Cash flow planning will become more important
• Errors or delays may be identified by the ATO much sooner

The ATO will also have greater visibility over payroll and super data through Single Touch Payroll (STP), increasing the importance of getting things right each pay cycle.

What Businesses Should Do Now to Prepare

Even though Payday Super may still feel a way off, early preparation will make the transition much smoother. Here are some practical steps businesses can take now:

1. Review your payroll systems
   Ensure your payroll software is up to date and capable of handling more frequent super payments. Many systems will be updated automatically, but it’s important to understand how the changes will affect your current setup.
2. Understand your cash flow
   Payday Super will bring super payments forward, which may impact short-term cash flow. Forecasting and budgeting now can help you avoid pressure later.
3. Check your payroll processes
   Accurate wages, classifications and super calculations will be critical. Regular payroll reviews can help identify issues before they become compliance problems.
4. Stay informed
   The ATO will continue releasing guidance as implementation approaches. Staying informed ensures there are no surprises and gives you time to adjust.
5. Talk to your Accountant early
   Every business is different. Getting tailored advice can help you understand how Payday Super will affect your business specifically and what changes you should prioritise.

How We Can Help

Navigating regulatory change can feel overwhelming, especially when it affects day-to-day operations like payroll. We can help you review your payroll processes, assess cash flow impacts and prepare your business for Payday Super well before it becomes mandatory.

If you’d like to discuss how these changes may affect your business, or if you want help preparing now, please get in touch, we’re here to help.

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

Posted on January 30, 2026 by Charisse Russell - Articles