Payday Superannuation Reform – What It Means for Your Business. Changes apply to all employers from 1 July 2026
On 4 November 2025, the Bill introducing the new Payday Superannuation legislation has passed both Houses of Parliament. The Bill introduces major reform to superannuation system effective 1 July 2026 for all employers. This change will require all employers to pay Superannuation Guarantee (SG) contributions at the same time as wages, replacing the current quarterly payment model. There are also a number of other major changes to how SG charge on late paid superannuation will be reported and managed, including assessments and penalties.
Why This Matters for Your Business
This is a major change to how your business will need to manage superannuation payments moving forward. By understanding these new requirements, you will be able to navigate the changes and be ready to operate under the new framework from 1 July 2026.
Your proactive approach in preparing for the changes allows your business to:
- Prepare for the cashflow impact of bringing forward the timing of super payments.
- Streamline payroll by aligning SG payments with regular pay cycles.
- Enhance employee trust with timely super contributions.
- Protect your business from costly penalties and interest charges.
- Avoid SG shortfalls and reduce administrative burden through proactive compliance.
Key Changes for Employers
The key changes under the new Payday Super framework you must be aware of:
- SG contributions must be remitted and received by the employee’s fund within 7 business days of the day you make a payment of “qualifying earning” (the “QE Day”).
- The usual payment period of 7 business days can be extended to 20 business days if it is a payment to the super fund of a new employee, or to a new super fund of an existing employee.
- Late or missed payments will now be fully deductible, but will attract:
- SG charge (consisting of any unpaid super plus calculation of “notional earnings” and “administrative uplift” components)
- New administrative penalties of 25 or 50% of total SG charge if ATO issues an assessment and the debt is not resolved within 28 days
- Voluntary disclosures can reduce administrative uplift and penalties if lodged before ATO assessment.
- SG charge will no longer be calculated on “salaries and wages”, instead is calculated in accordance with the actual SG shortfall on QE day.
- Exceptional circumstances (e.g. natural disasters) may extend deadlines and waive penalties.
- The ATO SBSCH (Small Business Super Clearing House) will be retired as part of this change, so employers who are still using it must plan for alternate clearing houses by 1 July 2026.
How We Can Help
Navigating significant changes is never an easy task. As your trusted business and tax consultants, we offer:
- Cash flow planning and management under the new payment frequency.
- Implementation of cloud-based payroll system and integration support.
- Outsourced payroll services for us to support you with this function.
- Assistance with super fund onboarding and employee choice of fund compliance.
- SG compliance reviews and readiness assessments.
- ATO engagement and voluntary disclosure assistance.
Get ahead of the change. Contact your principal adviser today to ensure your business is ready for Payday Superannuation ahead of 1 July 2026.
Have more questions? Read our Q&A on Payday Superannuation here.