Payday Super

Payday Super is a change to Australia’s superannuation rules that affects when employers must pay super.

From 1 July 2026, employers will need to pay super at the same time as wages, rather than quarterly.

Payday Super applies to super payments made from 1 July 2026 onward.

Any super linked to pay runs on or after this date must meet the new timing requirements

Yes. Once Payday Super begins, super contributions must be paid each pay cycle instead of quarterly.

Quarterly super deadlines will no longer apply after the start date.

No. The Superannuation Guarantee rate is not changing as part of Payday Super.

The reform relates only to payment timing, not the amount of super owed.

Payday Super applies to all employers who are required to pay the superannuation guarantee (SG) for their workers.

This includes:

• Small, medium and large businesses
• Employers across all industries
• Super payment must follow the employer’s regular payroll cycle.

Existing super eligibility rules remain unchanged for contractors.
If a contractor is currently entitled to super, Payday Super rules apply, including the new time cadence.

Many contractors are paid via accounts payable systems, on an invoice, so businesses need to be mindful of this change.

No. Payday Super applies regardless of:

• Business size
• Industry
• How often employees are paid

Super must follow the employer’s regular payroll cycle.

Under the current system, super can be paid up to 28 days after the end of each quarter.

From 1 July 2026, super will need to be paid each pay cycle, with contributions reaching employees’ funds shortly after payday.

This means:

• Super outflows occur more frequently
• Cash previously held until quarterly payment dates may be needed sooner
• Businesses with tight margins or irregular income may notice timing changes more acutely

For many employers, this is a timing shift rather than an increase in total cost.

While quarterly payments can create a single large outflow, Payday Super spreads super payments across the year.

Some businesses may find:

• Smaller, more regular payments are easier to forecast
• Payroll liabilities don’t accumulate over a quarter
• End‑of‑quarter cash pressure is reduced

Others may need to adjust how they manage working capital, particularly if wages are paid weekly or fortnightly.

Payday Super brings super closer to day‑to‑day payroll activity, which may affect:

• Payroll processing schedules
• Payment authorisation and reconciliation workflows
• Monitoring of failed or returned super payments
• Coordination between payroll and finance functions

More frequent payments can reduce reconciliation backlogs but may require clearer internal ownership of payment timing.

Small businesses

• May need to review cash reserves or payment timing
• Should plan ahead if moving from a quarterly payment mindset
• May need to transition from the ATO’s Small Business Superannuation Clearing House (SBSCH)

Medium and large businesses

• May need to review payroll‑finance integration
• Could require process or system changes to support higher‑frequency payments
• May benefit from reduced quarter‑end compliance activity

Employers can prepare for Payday Super by:

• Reviewing current payroll and super payment cycles
• Forecasting super payments alongside wages
• Reviewing the clearing house or payment provider timeframes
• Allowing time to test process changes ahead of July 2026

Starting preparation early allows issues to be identified before the legislation takes effect.

Super will need to be paid each time wages are paid.

If employees are paid:

• Weekly — super is paid weekly
• Fortnightly — super is paid fortnightly
• Monthly — super is paid monthly

Super must be paid in line with each payday and within the required timeframe after wages are paid to ensure contributions reach employees’ super funds promptly.

Public holidays and weekends can affect when contributions are treated as received, as the timeframe has been changed to 7 'business' days.

Super payments will align more closely with payroll and Single Touch Payroll (STP) reporting.

More frequent payments allow earlier visibility of super being paid.

Generally, employer super contributions are tax deductible in the financial year in which they are paid, provided they are made by the relevant due dates.

For tax purposes, a contribution is usually considered paid when it is:

• Received by the employee’s super fund, or
• Received and accepted by a clearing house that forwards the contribution to the fund

The exact timing can depend on how contributions are made and processed.

Under Payday Super, super payments are made in line with each payday, rather than quarterly.

This means:

• Contributions will typically be paid and deducted progressively across the financial year
• Fewer contributions are likely to fall close to 30 June
• EOFY timing issues may be reduced for some employers, compared to quarterly payments

However, EOFY timing is still important, especially for wages paid in late June.

At the end of the financial year:

• Super linked to wages paid before 30 June may still fall into the next financial year if the payment is not received by the fund in time
• Clearing house and bank processing times should be carefully considered
• Public holidays and weekends can affect when contributions are treated as received

Employers may choose to submit super payments earlier than usual around EOFY to ensure deductibility falls in the intended financial year.

If wages are paid in the final days of June:

• The related super obligation still applies
• Whether the contribution is deductible in that financial year depends on when it is paid and received

Employers should factor in processing time to avoid super contributions tipping into the following financial year unintentionally.

No. Payday Super does not change the underlying tax deductibility rules for super.

It does, however, increase the importance of:

• Payment timing
• Understanding processing cut‑offs
• Monitoring when funds are received

To help manage deductibility around EOFY, employers can:

• Review payroll and super payment schedules ahead of June
• Allow extra time for clearing house and bank processing
• Avoid last‑minute submissions where possible
• Confirm when payments are treated as received

Forward planning is especially important during periods of high payroll activity.

Employers should:

• Review payroll and super payment processes
• Confirm systems support pay‑cycle‑based super payments
• Plan for more frequent payments
• Prepare ahead of the 1 July 2026 start date

Learn more about preparing for Payday Super

If you’re paying super for a new employee, the first eligible super contribution must be received by the fund within 20 business days after the payday that triggered the obligation.

This provides additional time to set up employee and fund details correctly.

Late super payments may result in:

• Super Guarantee Charge (SGC) obligations
• Interest and penalties

Paying super on time reduces the risk of non‑compliance.

More information can be found on the ATO website: Missed and late super guarantee payments | Australian Taxation Office

Yes. Employers can choose to transition earlier if their systems allow.

Starting early may help spread payments evenly and reduce transition risk.

Yes. The ATO allows extended due dates in specific situations, including:

• The first super contribution for a new employee
• The first contribution to a new super fund
• Certain out‑of‑cycle payments
• Exceptional circumstances affecting multiple employers

In these cases, different timing rules may apply.

Under Payday Super, super must be paid each time you pay employees.

A super contribution is considered on time if it is received by the employee’s super fund within 7 business days after payday. Simply sending or submitting the payment is not enough — the fund must receive it.

For Payday Super, payday is the day you pay your employees their qualifying earnings (their wages or salary).

This day is sometimes referred to by the ATO as the “QE day”, as it triggers the super payment deadline.

A business day means any day other than:

• Saturday or Sunday
• A public holiday that applies across an entire Australian state or territory

If a public holiday applies only to part of a state or territory, it is still treated as a business day for Payday Super purposes.

Under Payday Super, super contributions must be received by an employee’s super fund within the required timeframe after payday.

If a clearing house takes longer than expected to process or forward payments, this may affect whether super is considered paid on time. It’s important to understand that initiating a payment is not the same as the fund receiving the contribution.

To reduce the risk of delays, employers should:

• Review their clearing house processing times
• Allow sufficient time between payday and payment submission
• Confirm how and when payments are passed on to super funds
• Consider whether their current clearing arrangement can meet Payday Super requirements

Employers remain responsible for ensuring super payments reach the funds on time, even when using a clearinghouse.

More information can be found on the ATO website: Missed and late super guarantee payments | Australian Taxation Office

If a super payment is returned because an employee’s nominated fund is no longer active (for example, it has closed or merged), the payment is not considered received by the fund.

In this situation, the employer is expected to:

• Identify why the payment was returned
• Take reasonable steps to redirect the contribution to a valid complying super fund
• Action the correction as soon as possible to minimise delays

Until the contribution is successfully received by an eligible fund, the super payment may be treated as late.

A returned or “bounced” payment may result in the contribution being late if it is not successfully redirected within the required timeframe.

However, where employers act promptly to correct issues outside their control — such as fund closures or mergers — this may be taken into account under the ATO’s compliance approach.

To help minimise payment failures, employers can:

• Keep employee fund details up to date
• Use fund validation checks where available
• Monitor payment responses from clearing houses or funds
• Resolve errors and reissue payments as soon as they are identified

Early detection and correction is important under Payday Super, where payment timing is closely linked to payroll cycles.

Payday Super changes when super is paid, but it does not change existing contribution caps or how they are applied.

This includes:

• Concessional (before‑tax) contribution caps
• Non‑concessional (after‑tax) contribution caps

Paying super with each pay run does not increase these caps or reset them more frequently.

Because super contributions will be made more frequently, employers and employees should continue to be aware of how contributions are tracked and what happens if contributions exceed annual limits or are paid in error.

For most employees, moving to more frequent super payments does not increase the likelihood of exceeding contribution caps, as the total amount contributed over the year remains the same.

However, employees who:

• Make additional voluntary contributions
• Use salary sacrifice arrangements
• Change jobs during the year

may wish to monitor contributions more closely, particularly when contributions are being made more regularly.

If an employer makes a super contribution in error (for example, due to a payroll correction, duplicate payment, or miscalculation), processes are already in place to address this and more information can be found on the ATO Communiy web page: Recovering overpayment of super guarantee | ATO Community

How an overpayment is handled can depend on:

The super fund’s rules

Whether the contribution has been allocated to the employee’s account

Whether the payment relates to a payroll correction or genuine error

Employers should contact the relevant super fund or their payroll provider for guidance on correcting overpayments.

Refunds of super contributions are generally limited and subject to strict conditions.

In many cases:

• Once contributions are allocated to an employee’s super account, they may not be refundable
• Corrections may instead be treated as adjustments against future contributions

The ATO and super funds provide guidance on how different overpayment scenarios are managed.

As super payments move to a payday‑based model, compliance risks are more closely tied to day‑to‑day payroll and payment processes. Issues that may have been identified and corrected over a quarterly cycle can now arise and escalate more quickly if not actively monitored. Understanding the situations that commonly lead to compliance issues can help employers put the right checks and processes in place.

Examples include:

• Clearing house processing delays
• Incorrect employee fund details
• Fund closures or mergers causing returned payments
• Insufficient time allowed between payday and payment submission
• Payroll or reporting misalignment

Having processes in place to monitor, detect and resolve issues quickly will be increasingly important.

The ATO has signalled that prompt action matters.

Where employers:

• Make genuine attempts to meet their obligations
• Identify issues early (such as bounced or misdirected payments)
• Correct errors as soon as practicable

This may be taken into account under the ATO’s compliance approach, particularly during the transition period.

Employers can help reduce compliance risk by:

• Paying super on payday where possible
• Allowing for clearing house and banking timeframes
• Regularly reviewing payment confirmations and responses
• Keeping employee fund details up to date

Preparing systems and processes ahead of 1 July 2026

Yes. The Australian Government has announced that the ATO‑run Small Business Superannuation Clearing House (SBSCH) will be retired as part of the move to Payday  Super.

The closure is planned to align with the commencement of Payday  Super on 1 July 2026.

Once the SBSCH is retired:

• Employers will no longer be able to rely on it to make super payments
• Super will need to be paid using an alternative SuperStream‑compliant clearing house or payment solution
• Employers should ensure their payroll and super arrangements support pay‑cycle‑based super payments

Businesses currently using the SBSCH are encouraged to plan ahead and consider alternative arrangements well before the start date.

If you currently use the SBSCH, you should:

• Review your existing super payment process
• Allow time to transition to another clearing house or payment method
• Ensure your chosen solution can support Payday  Super timing requirements

Further guidance is expected from the ATO ahead of the transition.

The ATO has indicated that information and guidance will be provided to support businesses as the SBSCH is phased out.

Employers should monitor ATO communications and stay informed as additional details are released.

More information can be found on the ATO website: Small Business Superannuation Clearing House | Australian Taxation Office

No. Employees do not need to take any action.

Payday Super is managed by employers and payroll systems.

For employees, Payday Super means:

• Super is paid more regularly
• Contributions are received closer to payday
• Payments are easier to track through their super fund

Learn why Payday Super is a good change for employees: How Payday Super benefits the employee.

We’ve partnered with Beam to ensure MicrOpay Evo and Definitiv Evo are ready to support Payday  Super.

This includes aligning payroll and super payment processes with the new timing requirements ahead of the 1 July 2026 start date.

Payday Super applies regardless of which payroll software you use.

If you don’t use MicrOpay Evo or Definitiv Evo, the key thing is to ensure your current payroll and super arrangements can:

Calculate super for each pay run

Pay super in line with each payday

Meet the required payment timeframes

Support payroll and super reporting requirements

Most payroll providers are preparing for Payday  Super, and we recommend contacting your software provider to understand how they plan to support the changes ahead of 1 July 2026.

You can find further information through:

• The Australian Taxation Office (ATO): Payday Super | Australian Taxation Office

• Treasury publications and legislative updates: Payday super | Treasury beta website

• Fair Work: Payday Super: New rules starting 1 July 2026 - Fair Work Ombudsman

The Access Group provides blogs and articles explaining Payday Super, why it’s being introduced, and what employers need to consider before it starts on 1 July 2026.

Payday Super: Why Integration Makes All the Difference | Access Group

Explains what Payday Super is, why integrated payroll and super systems matter, and outlines operational impacts such as tighter cash flow, more frequent reconciliations, SBSCH retirement, and real‑time ATO visibility. Also references The Access Group’s partnership with Beam.

Payday super will change how you pay super: Here's what you need to know.
A foundational explainer covering what Payday Super is, why it’s being introduced, benefits for employers and employees, and the July 2026 commencement date.

MicrOpay Evo
MicrOpay Evo users can get help from the MicrOpay Evo Help Centre.
Link: Payroll Processing | Access MicrOpay Evo Help Centre

Definitiv Evo
Definitiv Evo users can get help from the Definitiv Evo Help Centre.
Link: Payroll Processing | Access Definitiv Help Centre