- “Payday Super” reforms are now law, with the implementation of changes to commence on 1 July 2026.
- The reforms will change when employers must pay employees’ superannuation – super will move from a quarterly payment cycle to being paid at the same time as salary and wages (or very shortly after each pay run).
- This is a significant operational and cash flow change for small businesses. Below is a practical summary of what it means and what you can do now to prepare.
- The ATO is also closing the Small Business Superannuation Clearing House (SBSCH) from 1 July 2026
- The reforms apply to ALL employer businesses – even those family or sole employee businesses, who may in the past have only addressed superannuation and payroll on a quarterly or annual basis.
How to Get Ready — Practical Steps to Take Now
We’d suggest getting match-fit now, so that your systems and processes are in place by 1 July:
- Check your payroll software.
Xero (our preferred business software), and other business software providers already support payday-aligned super. Confirm your setup and check if any updates or integrations are needed.
- Map your pay cycles.
Note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each.
Include business owners in regular payroll cycles.
- Brief your team.
Make sure whoever manages payroll understands the changes. The ATO has free online resources and webinars to help, ATO information – preparing for payday super, as does your software provider Xero payday super
- Plan your cash flow.
Consider shifting from quarterly to more regular payments now to get used to the timing. Smaller, frequent super payments can reduce cash flow shocks.
- Download any information you need from SBSCH –
The SBSCH will not be accessible from 1 July 2026, so you should extract any pertinent information you will need now.
- Monitor and review.
Set up a monthly check to ensure super contributions have cleared correctly. Keep an eye on ATO updates as final guidance is released.
The Bottom Line
Payday Super isn’t just a compliance change — it’s an opportunity to make your payroll more efficient, your staff happier, and your business more compliant with less effort. With the laws now passed and just over 3 months to prepare, it’s time to get ahead of the curve.
If you’d like help reviewing your payroll setup or planning the transition, get in touch with our team — we can help you make sure your business is ready to go when Payday Super commences.
