Ask Your Aspen Advisor:
“Can you explain Payday Super in plain English and tell me what I need to change before 1 July 2026?”
If you employ people, you already know payday can be a bit of a balancing act. Wages, tax, super and cash flow all collide at once.
From 1 July 2026, that rhythm will change. A new system called Payday Super is now law, and it will bring superannuation much closer to payday.
The Change in Plain English
Right now, most employers pay super quarterly. Under Payday Super, from 1 July 2026 you will need to ensure super contributions reach your employees’ super funds within seven business days of each payday.
Super moves from “we sort that out later” to “we sort that out alongside wages”.
If super is not paid on time, the Superannuation Guarantee Charge (SGC) can apply. That is a catch up bill for the unpaid super, plus interest and administration costs, and it is almost always more expensive than paying on time.
The ATO will also retire the Small Business Superannuation Clearing House from 1 July 2026, so some employers will need new systems or providers.
Why The Government is Doing This
Two main reasons:
- To close an estimated 6.25 billion dollar unpaid super gap
- To better protect casual and part time workers, who are most likely to miss out when super is delayed
By tying super more closely to payday, the Government wants to reduce unpaid super and help people see their balances grow steadily.
What This Means For Your Business
For many employers, this will change how you plan and view your cash flow.
You will likely:
- Process super as part of your regular pay run
- Track cash outflows more closely, because wages and super are closer together
- Need clearer internal deadlines so nothing slips past the seven day window
If you rely on tight cash flow, have a high number of casuals or run different pay cycles across the business, this shift is especially important
Why this can be a Positive Change
Once you are set up, Payday Super can make life easier.
- No more large quarterly super spikes
- Easier to spot if something has gone wrong early
- Stronger trust from staff who see super paid regularly, not in irregular bursts
It moves you towards a smoother, more predictable rhythm.
How to Get Reday Now
A few practical steps:
- Check your payroll software – most modern systems can handle super aligned with pay runs, but you may need to review your settings
- Map your pay cycles – work out your pay dates and count seven business days after each one
- Stress test your cash flow – talk to us about how more frequent super will affect your cash position
- Train whoever runs payroll – make sure they understand the new timing and what will be expected
Payday Super is not about catching you out. It is about building a fairer, more reliable system for employees and a cleaner rhythm for businesses.
If you would like help understanding the impact on your business, or want a simple plan to move towards payday aligned super, reach out to your Aspen advisor.
