Super on Payday: What Employers Need to Know

Payroll is never simple, and soon employers will have another factor to manage: Payday Super, coming into effect on 1 July 2026. This reform ensures employees receive their superannuation contributions at the same time as their wages, helping close the unpaid super gap and giving staff more transparency over their retirement savings.

Key Changes for Employers

• Super contributions must be made within seven business days of payday.
• Late payments will incur the Superannuation Guarantee Charge (SGC), which includes interest and administrative penalties.
• The Small Business Superannuation Clearing House (SBSCH) will be retired, so alternative arrangements will be needed.

What This Means in Practice

While the change may feel like extra admin at first, it can actually simplify processes:

• Smaller, regular super payments may be easier to manage than quarterly sums.
• Staff see their super grow immediately, helping build trust and engagement.
• ATO monitoring will be quicker, reducing the risk of compounded penalties.

Getting Ready

• Review your payroll system for compatibility.
• Adjust internal processes to accommodate new payment timings.
• Train payroll teams on the updated rules.
• Consider consulting with your accountant or payroll provider for a smooth transition.

Take Action

Payday Super is more than compliance – it’s an opportunity to streamline payroll and strengthen employee relationships. If you’d like help reviewing your payroll systems or planning the transition to Payday Super, we’re here to guide you. Call 1800 618 800 or email admin@simmonslivingstone.com.au.