The Countdown to Payday Super: How to Get Your Business Ready Before it Hits

Big news is on the horizon: from 1 July 2026, Australia is switching to payday super – a change that means your employees will receive their super contributions every payday instead of once a quarter.

So, why the change? This update aims to improve employees’ retirement outcomes by ensuring super is received sooner and more consistently, while also reducing the buildup of unpaid or late super.

While 1 July may feel like a long way away, businesses that start preparing now will be in the best position to transition smoothly.

What is Payday Super?

Under the current system, employers are required to pay super at least once per quarter. With payday super, contributions will be aligned with payroll – meaning every pay run (weekly, fortnightly, or monthly) must include payment of the associated superannuation guarantee (SG).

Super payments will need to be made within 7 days of paying employees.

Why the change?

• Faster growth in employee super balances: employees get their super faster, which means their retirement savings grow sooner.

• Simplified obligations for employers: employers get clearer, simpler obligations (and fewer, “Oops, did we pay that quarter?” moments).

• Reduced risk of unpaid super: there’s less room for unpaid or forgotten super to slip through the cracks.

What Employers Need to Do to Prepare:

As an employer, what can you do now to get ahead of the changes?

1. Review your payroll processes: businesses will need to shift from quarterly super payments to a “pay-as-you-go” model. This doesn’t require a complete overhaul – but your systems should be ready to handle more frequent payments.

This may require:

1. Updating payroll calendars – do your pay dates allow super to be processed on time?  

2. Changing internal approval workflows – can your current approval processes keep up with more frequent payment cycles?

3. Review cash-flow cycles – will you have sufficient funds available when wages and super fall due on the same day?

2. Check that your payroll software is set up for payday super: most major payroll platforms – such as Xero and MYOB – will be updating their systems to support or automate payday super payments. We’ll be going through how to use Xero and MYOB to pay your super later in this article – keep scrolling!

Your job is to:

1. Confirm that your software version is up to date, and install updates when they land

2. Understand and familiarise yourself with any new features or automations

3. Ensure your employee details, including their superfund details, are up to date and correct

If you aren’t using a payroll platform that supports you in the transition to payday super, it may be time to look into a new payroll platform – contact us if you’re unsure! We’re here to make the transition as smooth as possible.

3. Clean up your Single Touch Payroll (STP) data, and ensure STP data is accurate: STP is still the backbone of employer reporting, so clean, accurate data will make the transition much smoother.

You’ll need to review:

1. Employee details

2. Ordinary Time Earnings (OTE) classifications: super is only paid on OTE, so it’s important that these classifications are set up correctly

3. Pay items and super categories: to ensure super is being calculated correctly

4. Assess your cashflow: we touched on this earlier, but it’s worth a closer look. Moving from quarterly to more frequent payments may change how cash moves through your business.  Quarterly super payments sometimes allow businesses to “breathe” between super payments. However, rather than paying super four times per year, you’ll be paying more frequently – potentially weekly or fortnightly.

While payments will be smaller, they’ll happen more often. It’s still important you start reviewing:

1. Your payroll cycle: will your current pay cycle work with payday super, or does it need to be adjusted?

2. Working capital impacts: how will more frequent super payment affect your cash at bank? Is that going to impact any other business operations?

5. Communicate early with employees: employees will welcome seeing their super balances updated more regularly, but it’s still valuable to let them know how the change works and when it will take effect.

Ensure you let them know:

1. What’s changing and when

2. Whether your pay cycle or processes will be updated.      

Keeping employees informed helps avoid confusion and builds trust.

Help with Software Setup:

We’ve previously covered how auto-super works within Xero and MYOB, two major payroll platforms. This earlier guide remains useful groundwork for understanding how super payment automation will work under payday super.

Start Preparing Now for a Smooth Takeoff:

While July still feels far away, making adjustments now will save time, reduce last-minute stress, and help your business transition effortlessly when payday super becomes law. In fact, we’d recommend adjusting your processes as soon as possible so that you’re comfortable with any changes well before payday super comes into effect.

And of course – we’re here to help. If you need support reviewing your payroll systems, updating configurations, or planning for the transition, our team is here to help! Contact us today for advice tailored to your specific circumstances and together, we can ensure you stay compliant with little to no stress!