From 1 July 2026, all Australian employers must pay superannuation on the same day employees are paid. Quarterly super payments will no longer be permitted. These reforms, introduced under the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025, represent a significant shift in how businesses manage payroll and compliance.
Any late or missed payment will result in Superannuation Guarantee Charge (SGC) liabilities. These penalties are costly, non deductible, and often more time consuming to resolve than the original payment. Employers should begin preparations now to avoid business disruption.
Payday Superannuation
Payday superannuation changes the core structure of payroll administration. Instead of managing contributions on a quarterly cycle, employers must incorporate super into every payrun. This affects employers with weekly and fortnightly payrolls, casual staff, shift workers and businesses with variable rosters.
Employee expectations will also increase. Contributions will appear frequently in super accounts, which means any discrepancy or delay will be noticed more quickly. This can impact employee trust and may lead to more queries or complaints.
The ATO will have more timely data on superannuation payments, increasing the likelihood that late payments will be detected.
Key Areas Employers Must Review
Every employer should reassess payroll and super processes before the changes take effect. The following areas are critical:
• Payroll System Capability Payroll Software must calculate superannuation accurately for each payrun and submit
payments to clearing houses without delay. Businesses relying on manual processing or older systems may not be able to support the new requirements.
• Clearing House and Fund Timelines Superannuation contributions must be received by funds within the required timeframe. Employers should confirm how long processing takes through their clearing house, as delays may still result in penalties.
• Internal Compliance Controls Employers should introduce documented procedures, assign responsibility for superannuation administration and conduct regular internal audits. Documented processes provide evidence of compliance if the ATO conducts a review.
Operational Effects on Your Business
The shift to payday superannuation will affect more than payroll processing alone. Cash flow planning will need to adjust to more frequent super payments, particularly for businesses with large casual workforces or seasonal employment patterns. Forecasting and budgeting should be updated early to avoid pressure on working capital.
Employees will also have greater visibility of super contributions. Employers should be prepared for increased questions or follow up from staff if payments are not reflected quickly in their accounts.
Legal and financial exposure will increase. A single late payment can trigger SGC liabilities, interest charges and potential ATO action. Medium sized and smaller employers without specialist payroll resources face heightened risk.
How NB Employment Law Supports Employers
NB Employment Law assists businesses to transition smoothly to payday superannuation by identifying compliance risks and advising on process updates. Our team helps employers put the right documentation and governance in place to prevent breaches and limit exposure to penalties.
We also support employers to establish a payroll policy that is compliant with relevant legislations.
Preparing for 1 July 2026
Employers should begin planning now. A payroll and superannuation audit will identify gaps and help determine what changes are required. Systems may need updating and workflows may need redesigning. Early preparation ensures compliance, protects your workforce and prevents unnecessary financial risk.
Payday superannuation represents one of the most significant employer compliance reforms in recent years. With the right guidance and processes, businesses can meet the new requirements confidently and maintain strong operational and legal standards.