The biggest change to employer superannuation in a generation took effect on 1 July 2026. If you employ staff — even one casual — Payday Super changes how and when you pay super. Here’s the plain-language version.
What changed
Under the old rules, you could accrue super all quarter and pay it by the 28th of the month after quarter’s end. That system is gone.
Under Payday Super:
- You must pay super every time you pay wages — weekly, fortnightly or monthly.
- Contributions must arrive in your employees’ super funds within 7 business days of payday.
- Super is calculated on qualifying earnings, a new term that brings together ordinary time earnings and certain other payments.
- You must report both qualifying earnings and your super liability through Single Touch Payroll (STP) with each pay run.
The super guarantee rate remains 12%.
Why it matters
The 7-business-day clock is the trap. It’s not “7 days to send the payment” — the money must be received by the fund within that window. Clearing houses and fund processing times eat into it, so paying on day 6 is already too late.
Miss the window and you’re into super guarantee charge territory: the shortfall, plus interest, plus administration costs — and unlike ordinary super contributions, SG charge amounts are generally not tax-deductible. For a small employer, a few sloppy months can add up to real money.
What you should do now
- Check your payroll software settings. Xero, MYOB and other major platforms support payday contributions — but only if they’re configured to remit with every pay run rather than quarterly.
- Reconsider your pay cycle. If you’re paying weekly, you now have 52 super deadlines a year. Some employers are moving to fortnightly pays to halve the admin.
- Watch your cash flow. Super now leaves your account with every pay run instead of sitting in your working capital for up to four months. Budgets and cash flow forecasts need updating.
- Fix any old shortfalls. Outstanding SG from earlier quarters doesn’t disappear under the new system. Voluntary disclosure to the ATO almost always beats waiting to be found.
How SAMAF can help
Our bookkeeping and payroll team runs Payday Super-compliant pay runs daily across Xero and MYOB — contributions, STP reporting and all. If you’d rather never think about a 7-business-day clock again, talk to us about payroll support, or book a free consultation.
This article is general information only and doesn’t take your circumstances into account. Get advice specific to your situation before acting — that’s what we’re here for.