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Get set for Payday Super 

What your business needs to know & how to prepare. 

How you pay superannuation is changing

From 1 July 2026, employers will need to pay super at the same time as wages under the new Payday Super legislation. Missing the deadline could result in penalties, interest charges, and extra admin.  

1 July 2026 

Payday super changes come into effect and are compulsory for all employers—no matter the size of the business or how many employees the business has. 

7 days 

Super payments must reach superannuation accounts within 7 business days of the pay cycle—whether the pay cycle is monthly, weekly or fortnightly. 

Closure of SBSCH

The ATO’s Small Business Superannuation Clearing House (SBSCH) stopped taking registrations for new users from 1 October 2025. It will close from 1 July 2026 as part of the Payday Super reforms.  

Learn more at the ATO’s Payday Super information hub here

What Payday Super changes mean for your business

Will I have to pay more? Is the superannuation guarantee rate increasing? In short, the total amount of super you’ll pay isn’t changing under the Payday Super changes. It’s still the same percentage required to be paid currently—it’s just the timing that shifts. Instead of those big, quarterly outflows, you’ll have smaller, more regular ones.

Things to consider:

Impact to cash flow

Payments will be more frequent, which may affect cash flow and require adjustments to payroll processes.

How you pay super

Payroll systems will need to handle super alongside wages.

Penalties for non-compliance

Failing to meet the 7-business-day payment deadline could result in penalties under the updated Superannuation Guarantee Charge framework. 

The benefits:

Better budgeting

You can plan ahead knowing exactly when super payments will occur.

Reduced compliance risk

Payments are made alongside each pay run, so you’re always up to date.

Employee trust

Staff can see their super contributions happening in real time, which builds confidence and helps with retention.

Learn more at the ATO’s Payday Super information hub here

With planning, Payday Super can strengthen the financial rhythm of your business

Get ahead of the new Payday Super rules with Flare

Enabling Flare’s superannuation workflow is a simple way to prepare for these changes. The key benefits are:

Improved compliance

ATO verification helps reduce the risk of late or incorrect contributions.

Convenience

The process is simple for employees and easy to manage for administrators.

Peace of mind

Verified, accurate super details help make payroll smoother without adding extra work.

Hear from the experts

Flare contributors Leanne Berry and Andrew Anderson discuss the upcoming changes, what they mean, and how you can prepare.

Your questions answered

Payday Super is a change to how employers pay super. From 1 July 2026, instead of paying super quarterly, employers will need to pay it at the same time as wages. Contributions will generally need to reach employees’ super funds within 7 business days of payday. The Government’s goal is to grow Australians’ retirement savings faster and make sure super is paid on time. Learn more. 

With Payday Super, payments will be more frequent, which may affect cash flow and require adjustments to payroll processes. Payroll systems will need to handle super alongside wages, and failing to meet the 7-business-day payment deadline could result in penalties under the updated Superannuation Guarantee Charge framework. 

Yes. From 1 July 2026, all employers will need to pay employees’ super at the same time as wages. 

The goal is to help Australians grow their retirement savings faster and ensure super is paid on time. Paying super more frequently benefits employees by letting their contributions start earning interest sooner and reduces instances of unpaid super. 
 
Employees will see super contributions land in their fund at the same time as their pay. This provides greater transparency, reduces waiting time, and supports better long-term retirement outcomes. 

Failing to pay super contributions within the required timeframe (7 business days of payday) could lead to penalties, interest charges, and the Superannuation Guarantee Charge (SGC). 
 
The SGC will now include: 

 

  • Individual final SG shortfall: unpaid contributions based on “qualifying earnings”  
  • Notional earnings: interest to compensate employees for lost investment returns on late contributions 
  • Administrative uplift: to reflect enforcement costs 
  • Choice loading: if an employer breaches choice of fund rules  

The late payment offset will no longer apply to amounts contributed after 1 July 2026. Using automated tools like Flare’s superannuation workflow can help give businesses peace of mind and audit-ready records.

Contact Flare

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The information on this page is provided for general information purposes only and is intended to outline, at a high level, legislative changes expected to apply from 2026 in relation to Payday Super. It does not constitute legal, tax, financial or employment advice. Legislative requirements and obligations may change and vary by employer. Independent professional advice should be obtained to understand how the reforms apply to your business’ circumstances and to ensure compliance. 

Get set for Payday Super  What your business needs to know & how to prepare. Contact Flare How you pay superannuation is changing From 1 July 2026, employers will need to pay super at the same time as wages under the new Payday Super legislation. Missing the deadline could result in penalties, interest charges, and […]