November 17, 2025
On 4 November 2025, the Australian Parliament passed the Treasury Laws Amendment (Payday Superannuation) Bill 2025, introducing one of the most significant changes to Australia’s superannuation system in decades.
Commonly known as Payday Super, the reform will require employers to pay superannuation contributions at the same time as wages, rather than quarterly. While the superannuation guarantee (SG) rate will remain at 12%, this change will have far-reaching implications for business cash flow, payroll management and compliance processes.
From 1 July 2026, all employers will need to pay superannuation on payday – whether wages are paid weekly, fortnightly or monthly. Contributions must reach employees’ nominated funds within seven business days of payment.
For new employees, the first contribution will need to be made within 20 business days of their start date. Employers who miss deadlines may face a 60% shortfall charge and daily interest, so accuracy and timeliness will be more important than ever.
In short, these new rules are designed to:
Although 1 July 2026 may sound distant, small businesses should start preparing now. Adapting early will help ensure payroll runs smoothly, cash flow remains stable, and compliance risks are minimised.
Start by confirming your payroll software can process super contributions each pay cycle. Most major providers – including Xero, MYOB and Employment Hero – are already updating their systems to support Payday Super.
If your current setup isn’t ready, consider platforms that:
Testing your system early and training your payroll team ahead of the deadline can help prevent errors when the new rules take effect
Payday Super means super payments will go out more frequently, reducing flexibility in how businesses manage short-term working capital. In the past, a quarter’s worth of unpaid super liabilities could temporarily support cash flow – that buffer will now disappear.
To prepare:
These proactive steps can make a significant difference in managing day-to-day cash demands once Payday Super begins.
The Small Business Superannuation Clearing House (SBSCH) is being phased out – closed to new users from 1 October 2025 and to all users from 1 July 2026.
If you currently rely on the SBSCH, it’s time to find an alternative. Look for clearing houses or payroll systems that automate super payments to ensure compliance and minimise admin time.
Running test payments before July 2026 will help you confirm your new systems are working correctly and reduce the risk of disruption when Payday Super takes effect.
Accurate data will be crucial under the new rules. Before the rollout, make sure your records are up to date and error-free.
Check that:
Small errors can cause rejected payments and penalties, so a quick data check now can save time and stress later.
The introduction of Payday Super represents a major administrative shift but also a positive step toward improving transparency and ensuring employees’ retirement savings grow more consistently.
By upgrading systems, planning for cash flow adjustments and validating payroll data, businesses can adapt smoothly to the new regime.
Over the coming months, LDB Group will continue to provide insights and practical advice to help employers navigate these changes. Our experienced tax, superannuation and business advisory team, based in Blackburn in Melbourne’s City of Whitehorse, can help you prepare your payroll systems, assess cash flow implications, and plan ahead for compliance.
Call us on (03) 9875 2900 or get in touch online to speak with a local expert about getting ready for Payday Super.
Here are some tips on how you can prepare your superannuation before end of financial year, as well as some tax considerations.
