As of July 2026, payday superannuation will become mandatory for all Australian employers. This significant regulatory change demands immediate attention from businesses to avoid penalties, protect employee benefits, and remain compliant with Australian Taxation Office (ATO) requirements.
Here’s a comprehensive guide to what employers need to know — and do — to stay compliant with payday super.
Table of Contents
- What Is Payday Super?
- ATO Compliance Requirements
- Key Changes from the Current System
- How to Ensure Payday Super Compliance
- Common Mistakes to Avoid
- What Happens if You Miss a Payday Super Contribution?
- Conclusion
What Is Payday Super?
Payday super means employers must pay their employees’ superannuation contributions at the same time they pay salaries and wages. Previously, contributions were due quarterly, but the new rule aligns super payments with each pay cycle — weekly, fortnightly, or monthly.
This change is designed to:
- Improve transparency
- Reduce unpaid super
- Enhance long-term retirement outcomes for employees
ATO Compliance Requirements
The ATO will require businesses to:
- Calculate Superannuation Guarantee (SG) amounts accurately for every pay cycle.
- Ensure payments are sent to employees’ super funds on or before the date salary is paid.
- Keep accurate records of SG payments and timing.
- Report payroll and super payments via Single Touch Payroll (STP) in real-time.
Failure to comply may result in:
- Penalties under the Super Guarantee Charge (SGC)
- Interest on unpaid contributions
- Additional compliance and audit costs
Key Changes from the Current System
| Requirement | Current (Pre-July 2026) | New (From July 2026) |
| SG Due Date | Quarterly | On or before payday |
| Payment Method | Via clearing house (delays possible) | Instant via integrated payroll systems |
| STP Reporting | Per pay run | Per pay run (no change) |
| Risk of Non-Compliance | Lower | Higher (due to frequency) |
How to Ensure Payday Super Compliance
1. Upgrade to a Payday Super-Ready Payroll System
Manual systems or outdated software will likely not meet compliance needs. Employers should move to platforms that automatically:
- Calculate SG per pay run
- Trigger payment to super funds
- Confirm STP reporting
PayTime is fully equipped for payday super, offering seamless integration with clearing houses and automated SG processing.
2. Conduct a Payroll Health Check
Review your payroll processes to ensure:
- Pay cycles are consistent
- SG is calculated for all eligible workers
- All super funds are correctly recorded
- Payment timelines align with new rules
3. Reassess Your Clearing House Provider
Not all clearing houses can process contributions fast enough to meet payday super timelines. Consider switching to a fast-clearing provider that:
- Provides real-time confirmation
- Syncs with your payroll
- Supports electronic remittance advice
4. Communicate With Your Employees
Let staff know about the shift to more frequent super payments. This builds trust and ensures employees know what to expect.
Sample email:
“From July 2026, your super will be paid on your payday rather than quarterly. This helps your balance grow faster and gives you more transparency.”
5. Stay Informed on Legislative Updates
The ATO will continue to issue guidance on compliance procedures, reporting, and audit expectations. Sign up for updates, consult your accountant, and monitor professional associations for changes.
Common Mistakes to Avoid
- Waiting too long to upgrade payroll systems
- Assuming clearing houses will automatically meet new deadlines
- Not adjusting pay dates or pay types to reflect SG requirements
- Neglecting STP reporting accuracy
What Happens if You Miss a Payday Super Contribution?
Late or missed SG contributions will trigger the Super Guarantee Charge (SGC), which includes:
- Unpaid SG amount
- 10% interest
- $20 admin fee per employee, per quarter
Even a one-day delay can incur penalties — making automation and early compliance essential.
Conclusion
Payday super compliance isn’t optional — it’s the new standard for Australian businesses starting July 2026. Proactively preparing your payroll, training your team, and upgrading your technology ensures that your business stays compliant and supports employees’ long-term financial wellbeing.
With PayTime, you can automate your payday super obligations and eliminate compliance stress. Our platform makes it easy to stay on track with ATO requirements while offering peace of mind to you and your employees.
