From 1 July 2026, a major shift is coming in how superannuation contributions are made by employers in Australia — and it’s vital for businesses to understand what’s changing. Here’s what your firm needs to know to get ahead.
What’s changing?
Currently, most employers remit superannuation contributions under the Superannuation Guarantee (Administration) Act 1992 on a quarterly basis. Under the new reforms – commonly referred to as “payday super” – employers will be required to make super contributions at the same time as wages or salary payments are made (that is, each payday).
Key obligations include:
Ensuring super contributions are received by the employee’s super fund within seven business days of the employee’s pay day.
Reporting via payroll systems (such as Single Touch Payroll, or STP) both the qualifying earnings and the corresponding super liability.
Adjusting the definition of earnings for super contributions to the new “qualifying earnings” concept, which aligns closely with ordinary time earnings.
Why is this happening?
The main goals behind payday super are:
Reducing unpaid superannuation: The Australian Taxation Office (ATO) estimates billions of dollars in super go unpaid each year.
Helping employees grow their super sooner: More frequent contributions mean earlier compounding investment returns for employees.
Improving compliance and transparency: Closer alignment between payroll and super payments makes it easier for the ATO to detect and act on late or missing contributions.
What this means for employers
For businesses, these reforms bring both challenges and opportunities.
Cash-flow & timing
Because contributions must now align more closely with each payday, employers will need to ensure their payroll-to-super payment processes are fast and reliable. Late or incorrect payments may trigger penalties or additional scrutiny.
Systems and processes
Payroll systems will need reviewing and, in many cases, upgrading. Employers should ensure wage codes are correct, clearing houses or super funds can process contributions quickly, and that STP reporting is accurate.
Risk of non-compliance
The ATO has indicated that risk categories (low, medium, high) will be applied during the first year of implementation. Employers who make genuine attempts to comply and correct errors promptly will likely be treated more leniently.
Small business impact
Smaller employers may experience greater cash-flow pressure or face higher administrative costs as they transition to the new rules. Planning ahead will be crucial.
What steps should you take now?
To be ready for payday super, employers should:
Review payroll and super workflows to ensure contributions can be made within the new timeframe.
Audit wage codes and payroll categories to confirm they correctly map to super obligations.
Upgrade systems and liaise with providers to confirm their readiness for more frequent payments.
Check STP and reporting accuracy to ensure all required data fields are up to date.
Plan for cash-flow adjustments, especially if you’ve been paying super quarterly.
Train payroll and HR teams so they understand the changes and can respond quickly to issues.
Monitor legislative updates, as further details may emerge before the 2026 start date.
While payday super will require preparation and adaptation, it also offers an opportunity for employers to modernise payroll systems, reduce compliance risk, and improve employee satisfaction.
At Glance Consultants, we help employers navigate evolving superannuation and payroll requirements with confidence. If your business needs assistance reviewing payroll processes, assessing compliance risks, or preparing for the upcoming payday super reforms, our experienced team is here to help.
