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Payday Super: What Employers Need to Know Before 1 July 2026

From 1 July 2026, the way Australian employers pay superannuation will fundamentally change.

Under the new Payday Super rules, employers will be required to pay superannuation at the same time as salary and wages, rather than quarterly. While the change is still some time away, businesses should begin preparing now to avoid cashflow shocks and compliance risks.

What is Payday Super?

Payday Super means that superannuation contributions must be paid each time employees are paid, whether that is weekly, fortnightly, or monthly.

This reform is designed to:

  • Reduce unpaid super

  • Improve employees’ retirement outcomes

  • Align super payments more closely with payroll reporting

How super will be calculated

Currently superannuation is calculated at 12% of an employee’s Qualifying Earnings (QE). This rate will apply into the future unless changed by law.

Qualifying Earnings (QE) is a new concept that:

  • Brings together Ordinary Time Earnings (OTE), and

  • Includes certain additional payments that may not previously have attracted super

This change broadens the earnings base and increases the importance of correct payroll configuration.

How to prepare for Payday Super

Many employers are already reviewing their payroll systems and internal processes to ensure they are ready for more frequent super payments.

1. Review and clean employee data

Accurate data will be critical under Payday Super. Employers should ensure that:

  • Employee super fund details are complete

  • SuperStream information is correct

  • TFNs and personal details are up to date

Missing or incorrect data can delay super contributions and create compliance issues.

2. Assess payroll systems and technology

You should review whether your current payroll system can:

  • Calculate super correctly on Qualifying Earnings

  • Process super payments each pay cycle

  • Integrate smoothly with Single Touch Payroll (STP) reporting

  • Handle increased payment frequency through clearing houses

Testing your systems well in advance will reduce last-minute issues.

3. Plan for cashflow impacts

One of the biggest changes for employers will be cashflow timing.

Instead of paying super quarterly, businesses will need to:

  • Fund super payments at the same time as wages

  • Adjust working capital planning

  • Reduce reliance on quarterly cash buffers

Early planning will help avoid financial pressure when the law commences.

4. Strengthen governance and compliance processes

Employers should review how they:

  • Record superannuation liabilities

  • Report contributions

  • Retain evidence of compliance with Superannuation Guarantee obligations

Clear processes will be essential as payment frequency increases.

5. Update new employee onboarding

Onboarding documents and processes should be updated to:

  • Remove references to quarterly super payments

  • Capture super choice information as early as possible

  • Ensure new employees are set up correctly from day one

Early data capture reduces delays and errors.

6. Communicate with employees

Payday Super will also affect employees, particularly in how frequently super is paid into their fund.

Consider:

  • Informing staff about the upcoming changes

  • Updating internal policies or FAQs

  • Training payroll or HR staff on the new requirements

Clear communication helps manage expectations and build trust.

Payroll software recommendation

We recommend using a cloud-based accounting and payroll system such as Xero, which will be updated to support Payday Super requirements and streamline payroll, STP reporting, and super compliance.

Our recommendation: start early

Where possible, we recommend that employers start paying super at the same time as wages now.

Doing so allows you to:

  • Build the habit before the law changes

  • Test payroll and cashflow processes

  • Be fully compliant well before 1 July 2026

Need help preparing for Payday Super?

If you have questions about how Payday Super will affect your business, or you would like help reviewing your payroll systems and processes, please contact us:

📧 questions@accoladeaccounting.com.au
📞 Accolade Accounting

  • (08) 6263 4466

  • (03) 9524 3145

We’re here to help you prepare early and avoid compliance issues.