Payday Super Is Coming: What Employers Need to Know Before 1 July 2026
From 1 July 2026, a major change to Australia’s superannuation system will take effect with the introduction of Payday Super.
Under the new law, employers will be required to pay Superannuation Guarantee (SG) contributions with every pay cycle, rather than quarterly. This change is designed to improve the timeliness and transparency of super payments, ensuring employees receive their entitlements sooner and more consistently.
If you’re an employer, now is the time to understand what’s changing — and how to prepare.
What Is Payday Super?
Currently, SG contributions are generally paid quarterly. From 1 July 2026, employers must:
Pay super at the same time as wages and salaries
Ensure super payments reach the employee’s fund within 7 business days of payday
This reform replaces the existing quarterly payment system and will require updates to payroll processes, systems, and cash flow planning.
Key Changes from 1 July 2026
🔹 Pay Super with Every Payrun
Superannuation Guarantee contributions must be paid each payday, alongside employee wages or salaries.
🔹 Tighter Payment Deadlines
Super must be received by the employee’s super fund within 7 business days of the payday.
🔹 New Employee Exception
For new employees, the first super payment has an extended deadline of 20 business days after their first payday.
🔹 SBSCH Closure
The ATO’s Small Business Superannuation Clearing House (SBSCH) will close on 30 June 2026. Employers currently using SBSCH will need to transition to an alternative, such as:
A commercial clearing house, or
Integrated payroll software (e.g. Xero)
What This Means for Xero Users
For clients using Xero, the good news is that Xero is actively updating its platform to support the shift to Payday Super.
These updates include:
Moving from quarterly to per-payrun super payments
Integration of Xero Auto Super as a replacement for the SBSCH once it closes
We’ll continue to keep our Xero clients informed as these changes roll out.
What Employers Should Do Now
To ensure a smooth transition by July 2026, employers should start preparing early:
✔️ Review Payroll Systems
Update payroll processes to manage more frequent super payments.
✔️ Check Your Software
Confirm your payroll software can:
Process super per payrun
Meet the 7-business-day fund receipt deadline
✔️ Plan for SBSCH Closure
If you currently use SBSCH, start planning your move to an alternative payment method before 1 July 2026.
✔️ Prepare for Cash Flow Changes
Paying super more frequently may impact cash flow — early planning is key.
✔️ Get Ready Early
Starting now will reduce the risk of compliance issues and help ensure a seamless transition.
Need Help Preparing?
Payday Super represents a significant change for employers, but with the right preparation and systems in place, it doesn’t have to be disruptive.
If you have any questions or would like assistance reviewing your payroll setup, cash flow impact, or software options, please let us know — we’re here to help.