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Payday Super: 6 Things Small Businesses Need to Know

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From 1 July 2026, a major change is coming for employers: Payday Super.

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Instead of paying super quarterly, you’ll need to pay it with each payroll, and contributions have to reach employees’ funds within 7 business days.

The amount doesn’t change — but timing, systems, and risk do.

1. Cash Flow Will Tighten

Quarterly buffers disappear. Instead of holding super for months, you’ll pay it every pay cycle. This could significantly reduce working capital, so determine the impact now.

2. Payroll Systems Must Be Ready

Moving from 4 to as many as 52 payments per year means automation is essential. Manual processes won’t cope — check your system is compliant and test it early.

3. The ATO Clearing House Is Closing

The Small Business Super Clearing House ends 30 June 2026. Businesses need a new solution that can handle frequent, real-time payments. Also, after 11:59 pm AEST on 30 June 2026, users of the ATO’s Small Business Superannuation Clearing House (SBSCH) will no longer be able to log in, submit instructions or view any records. Businesses need to download their records now as they may need them in future to respond to audits or employee queries.

4. Penalties Increase

Late payments are assessed per payday, not quarterly. Even small delays (including bank processing times) can trigger penalties.

5. Super Calculation Is Changing

Super will be based on qualifying earnings (QE), a broader measure than current rules. Some businesses may end up paying slightly more. For most employees on simple pay arrangements, there will be no difference. But if you have staff on salary sacrifice, variable pay, or earnings near the maximum contribution base, it’s worth reviewing.

6. Directors Face Greater Risk

Missed payments can affect Safe Harbour protection and trigger faster ATO action, increasing personal risk for directors.

What to Do Now

Prepare early to avoid disruption:

  • Model your cash flow under the new system
  • Confirm your payroll software is ready
  • If necessary, transition off the ATO clearing house
  • Review employee pay structures

Businesses that act now will transition smoothly. Those that don’t risk cash flow pressure, system issues, and penalties.

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