By Noela Lee
Payday Super is possibly the biggest change to employee superannuation since the introduction of superannuation guarantee in 1992.
Payday super requires employers to pay employees Superannuation Guarantee (SG) at the same time as they pay wages.
The change is part of the federal government’s “Securing Australian Superannuation” package with the aim of ensuring employees can easily match payments to their super fund with their pay slips.
It will have the added benefit of allowing the Australian Taxation Office (ATO) to identify and recover unpaid superannuation for employees.
Key Changes for Employers
Change Current System (Pre-1 July 2026) New System (From 1 July 2026) Payment frequency Minimum quarterly payments. Payments must be made at the same time as salary and wages are paid. Reporting Primarily through quarterly activity statements and Single Touch Payroll (STP). Enhanced reporting through STP, linking payments and data more closely. SBSCH The Small Business Superannuation Clearing House (SBSCH) is available for eligible small businesses. The SBSCH service will be closed from 1 July 2026. Compliance ATO identifies non-compliance, often with a significant time lag. More timely identification of errors and non-compliance through enhanced data matching
What should employers do?
- If employers are currently using the ATO Small Business Superannuation Clearing House (SBSCH), they must seek another clearing house to report superannuation contributions for employees. The SBSCH will cease to operate on July 1, 2026. Most payroll software will provide a clearing house or you can find an alternative on softwaredevelopers.ato.gov.au/SuperStream-certifiedproductregister.
- Inform employees of the changes to the super payment timing cycles, and stress the importance of notifying any changes to superannuation fund of choice immediately. If an employee changes their superannuation fund of choice, the contribution made by the employer will not be accepted by the old fund.
- Be prepared for the cash flow effect. If no changes are made to the current reporting and payment of superannuation prior to July 1, 2026, employers will have July superannuation and June quarter superannuation payable in July 2026.
- Test payroll process to ensure superannuation payments align with the new rules.
- Stay up to date with ATO guidance on ato.gov.au/businesses-and-organisations/super-for-employers/payday-super/about-payday-super
- Seek advice from their accountants for further advice on implementation and penalties for non-compliance.
