what is payday super?
The Federal Government has proposed changes to the rules on paying mandatory super contributions by employers from 1 July 2026.
From 1 July 2026, employers will be required to pay employees’ superannuation guarantee (SG) entitlements at the same time as their wages.
Currently, employers can decide to pay SG contributions at a minimum frequency of once a quarter, but changes will mean that employers must make compulsory super contributions within 7 days of paying their employees.
This will affect businesses differently, depending on their current payroll cycles.
why the change?
The Federal Government’s Payday Super legislation aims to create a fairer superannuation system for all Australians, and will be a win particularly for workers in lower-paid, casual and insecure jobs who are more likely to miss out when super is paid less frequently.
According to the Super Members Council, almost nine million Australians will have their super paid sooner as a result of this reform#. With Payday Super, their contributions will start earning compound interest sooner, delivering an extra $7,700 by retirement on average#.
what does this mean for employers?
For some employers, there could be some short-term challenges when Payday Super comes into effect. However, once set up, it will mean stabilised cashflow and reduced super liability.
Although the legislation has not yet passed, there are measures employers can take to be prepared. Check out our Payday Super checklist for employers:
Review payroll systems and processes:
- Ensure your payroll software can calculate and process super contributions in line with your pay cycle (weekly, fortnightly or monthly). Most modern cloud-based payroll systems will be updated to support Payday Super, but check with your provider and automate your super payments to employees if you haven’t already.
- For employers using the QuickSuper^ clearing house, real-time super payments are now available. By switching your payment method to Osko, a PayID will be automatically registered for your use. Learn more here or read our frequently asked questions.
- The ATO’s Small Business Superannuation Clearing House (SBSCH) is closing from 1 July 2026. If you use this service, you will need to consider an alternative clearing house, such as QuickSuper, which is available free of charge to HESTA employers.
Ensure timely payments and compliance:
- SG contributions will need to be received by employees’ super funds within 7 calendar days of each payday to avoid penalties. Late payments will be more visible due to Single Touch Payroll reporting, so penalties will be easily enforced by the authorities.
Budget for cash flow impacts:
- More frequent super payments require careful cash flow planning. Consider whether you need to update financial forecasts and or maintain separate accounts for super contributions.
Assess training requirements:
- Consider adding training, support and resources for your payroll personnel to handle any increased administrative load.
Communicate with employees:
- Inform your employees before the changes take effect, including how super payments will appear on their pay statements, and encourage them to check and confirm their super fund details.
Stay informed:
- Stay up to date with the Payday Super requirements through HESTA and the ATO website.
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# Super Members Council, Workers and businesses deserve certainty on payday super laws, 25 February 2025.
^ QuickSuper clearing house is a third-party service owned and operated by Westpac Banking Corporation, ABN 33 007 457 141 ASFL 233714. Third-party services are provided by parties other than H.E.S.T. Australia Ltd and terms and conditions apply. HESTA incurs a fee for use of QuickSuper, but no cost is passed on to HESTA employers for use of the facility.