Australia’s superannuation system is set for one of its biggest changes in decades. From July 1, 2026, employers will be required to pay superannuation contributions on payday, rather than quarterly. Known as the Payday Super mandate, this reform aims to improve retirement outcomes by ensuring super contributions are made more frequently and transparently.
For employers, this shift is significant. It means adjusting payroll processes, tightening reporting systems, and preparing employees for a change in how their super is managed. But with the right preparation, your business can turn this new requirement into an opportunity to streamline payroll, enhance compliance, and build stronger trust with your employees.
At Paytime, we understand that staying ahead of regulation is just as important as managing your people. This guide outlines the practical steps every business should take ahead of the July 2026 deadline.
Table of Contents
- Understanding the Payday Super Mandate
- Auditing Payroll and Superannuation Systems
- Reviewing Payroll Frequency
- Reviewing Payroll Frequency
- Communicating with Employees
- Testing Before the Deadline
- Connecting Super Changes to Broader Financial Wellbeing
- Blog in Summary
Understanding the Payday Super Mandate
Currently, most employers pay superannuation quarterly, which often means employees wait weeks or months after completing work to see contributions arrive in their super fund. The new mandate will require super to be paid at the same time as wages.
If your business runs payroll weekly, fortnightly, or monthly, super payments will now need to follow that same schedule. The goal of this reform is to reduce unpaid or delayed super contributions, provide better visibility for employees, and support Australians in growing their retirement savings more consistently.
While the change benefits workers, it introduces new responsibilities for employers, particularly around payroll accuracy and payment processing timelines.
Auditing Payroll and Superannuation Systems
The first step in preparing for this change is to review how your business currently handles superannuation. Many employers still use older payroll systems or rely on manual processing.
These approaches were designed with quarterly contributions in mind, and may not support the increased frequency required under the new rules. Take time to assess whether your payroll software can support automatic super payments with every pay run.
Speak with your software provider or finance team to confirm if your systems allow real-time reconciliation and processing of super. It’s also important to check whether your chosen payment gateway or clearing house can handle the volume and speed of frequent super contributions.
Identifying gaps now gives your business time to upgrade or change systems without disrupting operations.
Reviewing Payroll Frequency
With the new requirements tied directly to payroll cycles, the frequency of your paycycle will have a greater impact on cashflow. If your business pays employees weekly, you will need to process super weekly.
This can create added administrative pressure, particularly if you have a large or casual workforce. Some businesses might consider moving to fortnightly or monthly pay cycles to reduce processing complexity, but such decisions should be carefully evaluated as they could cause financial strain for employees who will have to wait longer to receive their income.
The best approach will depend on your operational needs, your workforce structure, and what is most appropriate for your employees. If any changes to pay frequency are made, it’s important to follow Fair Work guidelines and communicate the changes well in advance. If you intend to reduce frequency, you could consider financial wellbeing tools like Earned Wage Access to provide employees access to their earned wages prior to the pay date.
Training Payroll and HR Staff
Even with strong systems in place, your payroll and HR teams need to fully understand what this change means for daily operations. Training staff now will help ensure a smoother transition as the deadline approaches.
Your team will need to be comfortable adjusting payroll schedules, ensuring accurate calculation of super entitlements, and working with clearing houses that may have tighter processing windows.
They also need to understand the risks of delayed payments or incorrect submissions, which could affect compliance and employee trust. Providing training early on can increase internal confidence and prevent errors during the transition.
Communicating with Employees
For most employees, the move to payday super will be a welcome improvement. It means seeing contributions arrive more regularly, and having better visibility over retirement savings.
But to avoid confusion or misinformation, employers should proactively explain what the change involves. Even if you’re still preparing behind the scenes, keeping staff informed helps build transparency.
You can explain what payday super is, when it will take effect, and how your business plans to handle the changes. Let employees know what they can expect to see on their payslips or super fund statements.
This is also a great time to encourage employees to check and update their super fund details to ensure everything is accurate ahead of the shift.
Testing Before the Deadline
Planning is essential, but testing is what ensures your systems and processes run smoothly. Implement and build processes early so you have time to trial the new payroll processes ahead of the official payday super launch. This will help identify any hidden bottlenecks, errors or software requirements.
Setting internal goals is a good way to pace your preparation. For instance, you might aim to have systems ready by January 2026, begin internal testing by April, and pilot the new process in one department before rolling it out company-wide.
Giving your business a six-month runway for testing can significantly reduce stress and the risk of last-minute errors.
Connecting Super Changes to Broader Financial Wellbeing
As you adapt to more frequent super payments, it’s worth thinking about how this fits into your broader approach to employee financial wellbeing. Regular super payments could open the door to further support tools, such as earned wage access, budgeting resources, or flexible pay features.
When employees feel that their employer is proactive and responsive to financial needs, engagement and loyalty often improve.
This regulatory shift offers the perfect opportunity to strengthen your payroll systems while enhancing the support you provide your workforce. Solutions like Paytime can play a valuable role in that process.
Blog in Summary
Although the Payday Super Mandate doesn’t officially take effect until July 2026, businesses that act early will find themselves in a much stronger position. Preparing your systems, training your teams, and keeping your people informed are the keys to making this transition as smooth and beneficial as possible.
At Paytime, we believe payroll compliance and employee wellbeing go hand in hand. By preparing now, you can not only meet the new requirements but use the change as a chance to modernise your payroll processes and show your team that you’re invested in their future.