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Guide to Payday Super Legislation for Construction Companies
Payday Super is the biggest change to Australian payroll since Single Touch Payroll. This guide explains what the new legislation means for construction companies, and the steps you need to take to stay compliant. Learn how Access Coins Evo automates Payday Super processing, so your business is ready well before July 2026.
What is Payday Super?
Starting 1 July 2026, Australian employers must pay superannuation contributions on the same day as wages. This replaces the current quarterly payment system. Contributions must reach employees’ super funds within 7 business days of payday.
Unpaid or late superannuation remains a major issue, with an estimated $5–$5.7 billion affecting 3–4 million workers every year. By moving to Payday Super, younger employees stand to gain around $6,000 more in retirement savings thanks to earlier compounding of contributions. The reform also improves transparency, allowing employees to track super payments each pay cycle and quickly identify any missed contributions.
Key Employer Requirements for Payday Super
|
Requirement |
Details |
|
Pay timing |
Same day as wages; contributions at funds must be received within 7 business days |
|
Qualifying Earnings (QE) |
Payment types subject to superannuation contributions including Ordinary Time Earnings, salary sacrifice, allowances, bonuses |
|
Reporting |
Must use SuperStream and Single Touch Payroll |
|
Penalties |
Late payments trigger Super Guarantee Charge and interest |
|
Compliance monitoring |
ATO will apply a risk-based approach in Year 1 |
Payday Super - Construction-Specific Challenges
Cash Flow Timing
Under Payday Super, construction businesses lose the flexibility of quarterly super payments. Instead, contributions must be paid at the same time as wages, and funds must receive contributions within seven business days of payday. This means companies need to plan for more frequent cash outflows, which can impact project budgets and working capital.
For businesses operating on tight margins or managing multiple projects, this shift requires proactive cash flow forecasting and possibly renegotiating payment terms with clients or suppliers to maintain liquidity.
Payroll Complexity
Construction payroll is rarely straightforward. With multiple sites, varied pay codes, allowances, and overtime rates, calculating qualifying earnings (QE) for superannuation can be challenging.
Payday Super adds another layer of complexity by requiring accurate, real-time calculations for every pay cycle. Manual processes increase the risk of errors and penalties, making automated payroll systems essential for compliance.
Audit Readiness
Frequent super payments mean more reporting and documentation. Employers must maintain detailed records of qualifying earnings, contribution dates, and payment confirmations for each cycle. This level of transparency is critical for ATO audits and compliance checks.
Construction companies should ensure their payroll systems provide a complete audit trail and integrate seamlessly with SuperStream and Single Touch Payroll to avoid administrative headaches.
How Access Coins Evo Makes Payday Super Compliance Easy
Access Coins Evo, the all-in-one intelligent ERP built for Australian construction, now has payday super compliance built-in.
- Automatic Processing - Super contributions are calculated and paid seamlessly with each payroll.
- ATO Integration - Direct payments processed when employees are paid via SuperStream.
- Complete Compliance - Full audit trail and documentation for every payroll run.
- Zero Administration - Automated compliance eliminates manual super payment processes.
- Peace of Mind - No penalties, no compliance stress, no administrative burden.
Payday Super - Next Steps for Construction Employers
1. Assess Your Current Payroll System
Check whether your payroll solution supports Payday Super compliance. If not, start planning for an upgrade or integration well before July 2026 to avoid last-minute stress.
2. Plan Cash Flow
Prepare for more frequent superannuation outflows by reviewing your cash flow strategy. Unlike quarterly payments, super will now be due every pay cycle, which can impact liquidity.
Access Coins Evo uses construction-specific AI to generate accurate cash flow forecasts, factoring in payroll as part of your ERP system. This means you can model future obligations and adjust project budgets or supplier terms proactively.
3. Train Your Team
Ensure payroll, finance, and compliance staff understand qualifying earnings (QE) definitions and the new payment cycle. Training early reduces errors and penalties later.
4. Run a Pilot
Test your payroll system under Payday Super rules before July 2026. A pilot run helps identify gaps and ensures your processes are fully compliant when the legislation takes effect.
Why Choose Access Coins Evo?
- Ahead of the curve – Payday Super capabilities ready now.
- Built for construction – Handles multi-site, multi-role payroll.
- Future-proof compliance – Designed for evolving local legislation.
Access Coins Evo is Built for Australian Construction
Learn how Access Coins Evo empowers construction businesses to comply automatically, avoid penalties, and stay future-ready.
