Labor’s payday superannuation laws have now passed Parliament and received Royal Assent. From 1 July 2026, most employers will need to ensure superannuation guarantee (SG) contributions reach employees’ super funds within seven business days of payday, instead of by the current quarterly deadlines.
This is a major shift in how Australian businesses manage payroll, cash flow and super compliance. It is designed to reduce unpaid super and improve retirement outcomes, particularly for lower-paid and insecure workers.
What is payday superannuation?
Under payday superannuation, your SG obligations are tied directly to each payday, not the end of the quarter.
The legislation introduces a new concept of “qualifying earnings” (QE). In simple terms:
- Payday is the date you make a QE payment to an employee (for example salary, wages or similar ordinary time earnings).
- SG contributions for that payday must generally arrive in the employee’s super fund within seven business days of that payment date.
This is a tighter timeframe than the current rules, which allow up to 28 days after the end of each quarter. Employers will need to factor in clearing house and bank processing times to make sure contributions actually hit the fund on time, not just leave the business bank account.
When does payday super start?
Key dates for employers include:
- 9 October 2025 – Payday super legislation introduced to Parliament.
- 4 November 2025 – Legislation passes Parliament.
- 6 November 2025 – Bills receive Royal Assent; core changes are now law.
- 1 July 2026 – Payday super rules commence. SG contributions must generally reach employees’ funds within seven business days of payday from this date.
The ATO has released a draft Practical Compliance Guideline and is consulting on its compliance approach for the first 12 months after the change starts. Employers making genuine efforts to pay in line with each pay cycle are more likely to be treated as “low risk”. For more background on the broader policy shift, you can also read our 2023 Federal Budget summary for business.
Key changes employers need to understand
1. Timing – seven business days from payday
The headline change is timing:
- SG contributions must reach the employee’s super fund within seven business days after payday (not just be paid out of your account).
- The seven-day period is based on business days, not calendar days.
That means your payroll and payment processes need enough buffer for internal approvals, bank cut-off times, clearing house processing and delays in super funds allocating contributions.
2. New “qualifying earnings” concept
The new rules work around qualifying earnings (QE). In broad terms, QE is a defined set of payments that trigger SG obligations, such as ordinary time earnings and some bonuses or allowances.
You will need to ensure your payroll system correctly classifies QE payments so that paydays are identified accurately and the right SG amounts are calculated and paid on time.
3. Redesigned Superannuation Guarantee Charge (SGC)
The superannuation guarantee charge (SGC) regime is being redesigned to align with payday super. If contributions are late or not received by the fund within the required timeframe, employers can still face SGC assessments, interest, administration components and potential penalties for serious or repeated non-compliance.
The key message is unchanged: late is still late, and payday super will not make penalties lighter for employers who consistently miss their obligations. For more context on the ATO’s enforcement focus, see our article on super compliance under the ATO’s microscope.
4. Stronger ATO visibility and enforcement
The government expects payday super to significantly improve the ATO’s ability to detect unpaid or late super sooner, using more frequent data from Single Touch Payroll (STP) and super funds.
The ATO has already been increasing its focus on super guarantee compliance and late payments. Payday super gives it more frequent data points and a clearer picture of which employers are falling behind.
Practical impacts for small and medium employers
Cash flow and payroll cycles
Shifting from quarterly to payday-linked super will impact cash flow. Instead of holding SG amounts for weeks or months, businesses will need to remit super much more frequently.
That may mean tighter short-term cash flow, less scope to smooth payments over a quarter, and a need for more accurate rolling forecasting. Small businesses with thin margins, seasonal income or high casual workforces may feel this shift most.
These changes sit alongside recent superannuation changes effective 1 July 2024, including increases to the SG rate, which can further affect overall employment costs.
Payroll, clearing houses and software
You will likely need to review:
- Payroll software – can it calculate SG per pay run, track QE and schedule payments to meet the seven-day rule?
- Super clearing house arrangements – processing times and cut-off deadlines will be critical.
- Internal processes – who approves payments, and how quickly can they be released after each pay run?
A key related change is the closure of the ATO’s Small Business Superannuation Clearing House (SBSCH). New registrations are already restricted and the service is scheduled to close from 1 July 2026, meaning affected employers will need alternative arrangements. For a wider view of recent SBSCH and SG updates, see our Q1 FY26 wrap on tax compliance changes.
Risk areas – casuals, bonuses and off-cycle payments
Payday super will make certain situations more sensitive from a compliance perspective, including:
- Casual and part-time staff with irregular hours
- Bonuses and commissions paid off-cycle
- Backpay or corrections processed after underpayments are discovered
- New starters and leavers, where final pays and adjustments are often rushed
Each of these events can trigger a payday and start the seven-business-day clock.
Action checklist to get ready now
- Map your current payroll cycles
Weekly, fortnightly, monthly – and any off-cycle or ad-hoc payments. Identify where seven business days could be tight, especially around public holidays. - Talk to your payroll software provider
Confirm system readiness for payday super and QE. Ask how SG payment files will be generated and whether you can automate payment scheduling. - Review your super clearing arrangements
If you use the SBSCH, plan for the closure from 1 July 2026. Check cut-off times, processing SLAs and reporting from any third-party clearing house. - Update cash flow forecasts
Build more frequent SG payments into your budget. Stress-test scenarios where turnover dips but payroll stays constant. Our guide to key tax and super dates can help you plan around critical deadlines. - Tighten payroll governance
Clarify approvals and authorisations for SG payments. Ensure you can quickly correct underpayments and track late contributions. - Train HR and payroll teams
Explain what payday super is and why it matters. Emphasise that “paid” now effectively means “received by the fund”.
How The Quinn Group can help
Payday superannuation sits at the intersection of tax law, payroll systems and cash flow management. Getting ready is not just a technical payroll exercise – it is a broader compliance and business planning issue.
Our integrated team of tax accountants, lawyers and business advisers can help you:
- understand how payday super applies to your business structure and workforce
- review your existing SG compliance history and risk areas
- work with your software provider or bookkeeper to streamline processes
- model cash flow impacts and plan for the SBSCH closure and other super changes
We help businesses across a wide range of industries navigate ATO changes and stay ahead of compliance deadlines. For broader planning ideas, you may also find our end of financial year tax tips useful when reviewing your overall position.
Book a Consultation
Need tailored advice? Book a consultation with The Quinn Group. Call 1300 QUINNS (1300 784 667) or +61 2 9223 9166, or submit an enquiry to discuss your superannuation and payroll obligations.
NEED HELP? This article provides general information and should not be considered legal or tax advice. For personalised guidance, please contact our expert team of tax accountants at The Quinn Group by calling 1300 QUINNS (1300 784 667) or +61 2 9223 9166, or submit an online enquiry form to arrange an appointment.
