From 1 July 2026, every employer in Australia will need to pay superannuation on payday — not quarterly, not monthly, but every single pay cycle.
This is one of the biggest payroll reforms in Australia’s history.
If your business pays wages weekly or fortnightly, you will now pay super weekly or fortnightly. This is a major shift, especially for small businesses with tight cash flow.
This full-length guide will explain everything you need to know so you’re fully prepared.
What Is Payday Super?
Payday Super is a new rule that requires employers to pay superannuation contributions at the same time they pay wages. Instead of waiting until the end of the quarter, super must be paid on a real-time basis.
The main goals are to:
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Increase retirement savings
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Reduce late or missing contributions
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Improve transparency
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Help the ATO detect non-compliance instantly
Payday Super is tied to the rollout of SuperStream 2.0, which lets the ATO and super funds match payments to payroll data in real time.
Who Is Affected?
Every employer in Australia:
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small businesses
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medium businesses
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large organisations
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family businesses
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sole traders with employees
If you pay wages, you must pay super at the same time.
Why Is Payday Super Being Introduced?
Here are the three major reasons:
1. Protecting workers
Many workers have experienced:
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missing super
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late super
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unpaid contributions
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paper trail problems
Real-time payments help eliminate these issues.
2. Improving compliance
The ATO reports billions in unpaid super each year. Quarterly reporting makes it easy to fall behind.
Payday Super removes the “lag” between wages and super.
3. Preventing employer cash-flow misuse
Some businesses use super as short-term cash flow. Payday Super stops that.
When Does Payday Super Start?
The mandatory start date is:
1 July 2026
It applies to the first pay cycle after this date.
How Payday Super Changes the Way You Run Payroll
Before Payday Super
You could pay:
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weekly wages
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quarterly super
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from a different bank account
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on different dates
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with large lump sums
After Payday Super
You must pay:
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super on payday
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for every employee
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through your payroll system
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with real-time reporting
Super becomes part of your ordinary pay run — not a separate task.
The Benefits for Businesses
It may seem like extra work, but there are real benefits:
1. Reduced admin
You no longer need to remember quarterly deadlines.
2. Better cash-flow forecasting
Payments become regular and predictable.
3. Fewer penalties
You’re less likely to fall behind or miss deadlines.
4. Stronger employee trust
Staff will see their super appear almost instantly.
The Challenges for Businesses
1. Cash-flow pressure
This is the biggest issue. If you pay wages weekly, super must also be paid weekly.
You’ll need to:
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update your cash-flow forecasts
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adjust client payment terms
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build a cash buffer
2. Updating payroll and clearing houses
Older systems may not support real-time super.
3. Staff training
Your team must understand how Payday Super works.
4. Testing before July 2026
Wait until the last minute and you risk payroll failures.
How to Prepare for Payday Super
Here are the steps every employer should take.
1. Review your payroll system
Ask your provider:
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Will your software support Payday Super?
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When will updates be available?
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Will there be extra costs?
If you still use spreadsheets, you must upgrade.
2. Confirm employee super fund details
Payday Super will fail if your data is wrong.
Check:
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super fund name
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USI and ABN
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membership number
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TFN
3. Adjust your cash-flow planning
Model how paying super every week or fortnight will impact:
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cash reserves
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supplier payments
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loan repayments
4. Choose a new clearing house (if needed)
This is essential for businesses using the SBSCH.
5. Train payroll staff
Everyone running payroll needs updated procedures.
6. Start early testing in 2025–26
Do not wait for July 2026.
What Happens If You Miss Payday Super Payments?
Late payments will trigger:
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the Superannuation Guarantee Charge (SGC)
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penalties
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interest
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loss of tax deductions
The ATO will know instantly.
How Payday Super Links to the SBSCH Shutdown
The SBSCH cannot support real-time payments.
This is why the clearing house is closing in 2026.
If you use the SBSCH, you must switch to a SuperStream 2.0-ready clearing house before July 2026.
How Carmody Accounting Can Help
Carmody Accounting can help you:
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upgrade your payroll system
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choose the right clearing house
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run early testing
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manage cash flow
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train your staff
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avoid penalties
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stay fully compliant
We can also handle your payroll entirely if you prefer an outsourced option.
FAQ (Optimised for Featured Snippets)
Is Payday Super compulsory?
Yes. It becomes mandatory from 1 July 2026.
Do casual employees get Payday Super?
Yes. All eligible employees receive super per pay cycle.
Can I keep quarterly super payments?
No. Payday Super replaces the quarterly system entirely.