From 1 July 2026, a big shift is coming to the way businesses handle superannuation payments. Instead of the current quarterly payments, employers will need to pay super at the same time as wages. It’s called Payday Super, and while it’s designed to benefit employees, businesses need to get prepared now to avoid cash flow headaches and compliance issues later.
Here’s what you need to know and how to get ready.
The government has been chasing unpaid super for years, and the numbers aren’t pretty. The ATO estimates that $5.2 billion in super entitlements went unpaid in the last financial year. By making super payable alongside wages, they’re hoping to close the gap and give employees a better shot at growing their retirement savings.
For employees, this means their super gets invested faster, compounding returns over time. For business owners, it means big changes to cash flow management and payroll processes.
1. Superannuation Will Be a More Frequent Outflow
Instead of setting aside super for quarterly payments, you’ll need to pay it as frequently as you process wages. This could mean weekly, fortnightly, or monthly payments depending on your payroll cycle.
Action Step: If your business runs on tight cash flow, now is the time to revisit your budgeting and forecasting to avoid any surprises.
2. Payroll Systems Will Need an Update
Most modern payroll software will likely adapt to Payday Super, but it’s worth checking if your current setup can handle it. If you’re still manually processing super payments via a clearing house, now is the time to automate.
Action Step: Speak to your bookkeeper or accountant to confirm your payroll software is Payday Super-ready.
3. Late Payments Will Be a Bigger Problem
With the ATO keeping a closer eye on unpaid super, there’s less room for error. If super isn’t paid on time, penalties and interest charges could add up quickly.
Action Step: Make sure super is being processed with every pay run and not treated as an afterthought.
💡 Review Your Cash Flow – More frequent payments mean less time to set aside super. Get ahead of it by stress-testing your cash flow.
💡 Check Your Payroll Software – If you’re using older systems, they may need an upgrade to process super payments automatically.
💡 Talk to Your Accountant – They can help you model the cash flow impact and suggest the best approach for your business.
💡 Educate Your Team – If you have an internal payroll team, they’ll need to be across these changes well before 2026.
The shift to Payday Super is coming, and while it’s designed to benefit employees, businesses need to prepare well in advance. Waiting until 2026 to make changes could put unnecessary pressure on your cash flow and systems.
If you need help getting ahead of this, let’s chat. We work with business owners to simplify financial processes, improve cash flow management, and ensure compliance—without the stress.