Labour’s “Payday Super” legislation has officially passed Parliament, changing when and how superannuation guarantee payments must be made.
What’s Changing
From 1 July 2026, employers must pay superannuation at the same time as salary or wages – not quarterly. Super contributions will need to reach employees’ funds within 7 days of payday.
Most accounting systems take around 7 days from processing the superannuation guarantee payment until the funds are received by the employee’s super fund.
To be clear, this means you must process super on payday, not 7 days after.
This reform aims to:
- Prevent unpaid or delayed super, helping the ATO quickly identify missed payments;
- Give employees better visibility and confidence in their super contributions.
What This Means for Employers
This change isn’t just a compliance update; it’s a cash flow shift.
You’ll need to:
- Align payroll systems so the super is paid every pay cycle.
- Prepare for tighter cash flow timing – super guarantee payments will now go out with wages, not months later.
- If you don’t currently have a structured cash flow system in place, now’s a great time to consider one, such as the Profit First method, which helps you allocate money for its intended purpose, eliminate poor spending habits and promote systems that create profitable businesses.
- For those who are using the Profit First System, review your cash flow allocations to make sure these more frequent super guarantee payments don’t squeeze your owner’s pay or operating profit.
- Stay compliant — late payments will attract more substantial penalties.
- The ATO does not discriminate against employees who are business owners; business owners (usually operating under a company structure) must pay their superannuation guarantee just like any other employee of the organisation.
Most payroll and accounting software providers will roll out updates before 2026. We have already seen some changes in Xero and can only assume the final rollout will be ready by 1 July 2026.
How to Prepare Now
- Review your payroll setup and cash flow rhythm.
- Start forecasting the impact of more frequent super payments on your cash reserves.
- Talk to us about how to integrate this change into your business so you stay compliant and profitable.
- Prepare your team and update internal processes early.
- Start today! There is no reason why you cannot pay the Superannuation Guarantee as soon as the payroll cycle has been completed. Test and experience the cash flow change, with no consequences if you need to wait until the end of the quarter to pay in full.
Profit Insight
When cash flow gets tighter, discipline equals freedom.
Payday Super is another reminder that money management isn’t about working harder; it’s about being proactive with your profit. The businesses that thrive through these changes are those with a clear plan for every dollar before it hits their account.
If you’d like help reviewing your payroll flow or adjusting your Profit First allocations ahead of 2026, get in touch, and we can ensure your business stays compliant and cash-positive.