Payday Super is coming – don’t let 1 July sneak up on you
by Tina Zawila
With so much attention on the recent Federal Budget, it would be easy for another important tax change to slip under the radar.
From 1 July 2026, “Payday Super” takes effect, requiring employers to pay super at the same time as wages instead of quarterly. For many small business owners, this is more than a compliance update – it’s a change to how payroll and cashflow are managed day-to-day.
What’s changing?
Under the new rules:
- Super must be paid each pay run, not quarterly
- Contributions must reach employee super funds within 7 business days of payday
For weekly or fortnightly payrolls, this means super becomes part of every pay cycle.
ATO clearing house – closing
If you currently rely on the ATO Small Business Super Clearing House, it’s important to note that it will close from 1 July 2026.
You will need to have an alternative arrangement in place – typically through payroll software or another clearing house provider.
The real impact: cashflow
The most significant impact is not administrative – it’s cashflow.
The current system allows a timing gap between wages and super. From 1 July, that gap disappears. Super becomes a real-time cost of payroll, not a quarterly obligation.
This means businesses will need to:
- Fund super more frequently
- Tighten cashflow management
- Avoid relying on accrued super as working capital
Failing to adjust can create pressure, particularly for businesses with tight or irregular cashflow.
What to do now
Don’t leave this until July. In the lead-up to year end:
- Review your payroll systems and processes
- Ensure your software can handle pay-run super payments
- Transition away from the ATO clearing house if applicable
- Assess the cashflow impact and plan accordingly
Payday Super is designed to improve outcomes for employees, but it will require businesses to be more disciplined with their systems and cashflow. With 1 July approaching, now is the time to prepare — not react.
The professional team at UHY Haines Norton are here to respond to your payroll questions and/or assist you to set up your payroll processes and systems. Call us on 07 4972 1300.
