From 1 July 2026, the way employers pay superannuation will change.
This reform, known as Payday Super, is now law and will affect every employer who pays wages.
Here’s what you need to know.
What’s Changing?
Currently, most employers pay super monthly or quarterly.
From 1 July 2026, you will need to:
- Pay super at the same time you pay wages.
- Make sure the super reaches the employee’s fund within 7 business days of payday.
Every pay run (weekly, fortnightly, or monthly) will create its own super deadline.
Why This Matters
Payday Super means:
- More frequent super payments.
- Less time to fix mistakes.
- Higher penalties if super is late or missed.
The ATO will see super payments in near real‑time, so errors are more visible than under the current system.
Will the ATO Be Lenient at the Start?
Yes — but with limits.
The ATO has said that during the first year (2026/27), they will take a practical approach for employers who:
- Make a genuine effort to comply.
- Fix mistakes quickly.
- Come forward voluntarily if something goes wrong.
However, this does not mean penalties automatically disappear. Late super can still attract interest and charges.
Repeated or serious issues may still lead to ATO action.
What Should Small Businesses Do Now?
Even though the change starts in 2026, preparation should now.
We recommend:
- Checking whether your payroll software can pay super each pay run.
- Understanding the cash flow impact of more frequent payments
- Reviewing payroll processes to reduce errors
- Get advice early if you’re unsure.
The earlier you prepare, the easier the transition will be.
Need Help?
If you’d like help reviewing your payroll setup or planning for the change, get in touch.