Getting your small business ready for Payday Super

We’ve partnered with MYOB to help support our Small Businesses Insurance customers across Australia learn about upcoming changes to Payday Super. Here’s what you need to know about the new law, potential cashflow impacts, and technology options that may support compliance.

Payday Super is a change to how businesses calculate and pay their employee’s super guarantee. It’s a new rule coming into effect on 1 July 2026, requiring employers to pay super contributions at the same time as they pay their workers’ salary and wages. This means no more waiting to pay super contributions by the quarter. The change also allows super contributions to be received by an employees’ super fund within 7 business days of being paid (there’s an exception for new employees though).

According to the Australian Taxation Office (ATO), the change will apply to all employers in Australia, including micro‑businesses and sole traders who employ staff.

The intention of Payday Super is to help ensure employees receive super contributions more regularly and reduce the risk of delayed or missed payments. For small businesses, the change may have a few practical implications worth considering:

Paying super each pay cycle may change how cash moves through your business, compared with setting funds aside for quarterly super payments.

More frequent super payments could increase payroll administration, unless processes are automated through payroll systems.

Having out-of-date super fund details may result in late or rejected payments, so it’s important to check you have the correct details for all eligible employees to help prevent problems.

If contributions aren’t made on time, in full or to the correct fund, a super guarantee charge may apply.

Understanding how these changes could affect your business can help reduce uncertainty when Payday Super comes into effect. For an in-depth checklist on what you can do to prepare, head to: ATO Payday Super checklist for employers.

Many small businesses have used the ATO’s Small Business Superannuation Clearing House (SBSCH) to make super payments. With the introduction of Payday Super, SBSCH (which was intended for less frequent pay cycles) is no longer required.

What this means: 

• Small businesses won’t be able to log in to SBSCH to submit instructions or view records from 1 July 2026.
• You’ll need to find an alternative way to pay super that’s SuperStream compliant.
• Ensure you download any necessary transaction records you need before the SBSCH tool closes.  

Preparing early may help make the transition to Payday Super smoother. 

1. Review your payroll and employee super details
   • Confirm all eligible employees are set up correctly to receive super.
   • Check super fund details, names, USIs and member numbers are accurate and up to date.
      
2. Review your payroll and payment setup
   • If you’re using the SBSCH or manual processes, start planning your move to a new solution.
   • Consider whether your payroll or accounting software can calculate and process super as part of each pay run.
      
3. Prepare for cashflow impacts
   • Consider using reporting tools in your accounting or payroll software to model how weekly, fortnightly or monthly super payments may affect your business finances.
   • Think about building super into your budget ahead of time to help avoid surprises from July 2026.
      
4. Automate where possible
   • Some payroll solutions automatically calculate and process super as part of the pay run, which may help reduce manual work and potential errors.
      
5. Allow time for training and testing
   • Make sure anyone responsible for payroll understands the new timing requirements.

Consider running test pay cycles before July 2026 to help identify and resolve issues early. 

Tip: If you’re unsure about what steps to take, new programs to use or the best timing for your business to transition, consider talking with a registered tax professional for advice tailored to your circumstances.

Cashflow pressure

• The challenge: More frequent super payments may place additional pressure on cashflow.
• How tools may help: Cashflow forecasting and budgeting tools can help some businesses plan for super obligations weeks or months in advance.

Administrative effort

• The challenge: Processing super manually every pay cycle can be time consuming.
• How tools may help: Integrated payroll solutions may help automate super payments alongside wages and PAYG, reducing manual data entry and reconciliation. 

Compliance confidence 

• The challenge: Missing payment deadlines may increase the risk of penalties and additional administration.
• How tools may help: ATO approved, SuperStream‑ compliant systems can help keep clearer records and generate reports if required.

The ATO has indicated that during the first year of Payday Super (2026–27), there may be a greater focus on education and support for businesses making genuine efforts to comply. Even so, putting good processes in place early may still be beneficial.

With the upcoming changes to PayDay super, you might be thinking about making some changes to the way you manage your business's administration. MYOB occasionally provide NRMA Insurance Small Business customers with offers on accounting and business administration software, but even when there isn't a discount available, they've got a range of resources available to explore that may be relevant to your small business.

For more information, explore MYOB’s full Payday Super guide.