Fact or Fiction? What to expect with Payday Super
With just over 2 months to go until Payday Super begins, let’s clear up a few of the biggest misconceptions that have been going around.
Myth: “I’ve got plenty of time. There’s nothing to do until 1 July 2026”
While Payday Super starts on 1 July, many employers will need time to prepare well beforehand – planning for cashflow changes, understanding changes to payroll systems and transitioning away from the ATO’s Small Business Superannuation Clearing House (SBSCH), which permanently closes 1 July.
We encourage you take some time to understand the changes you may need managing your cash reserves, check timings on super payments and make sure your payroll software supports reporting.
Myth: “I can still access the SBSCH records after 30 June”
It is important to note you’ll have no access to the service of SBSCH records after 30 June 2026. As there will be no read-only access, make sure you download your records and transition early to new provider.
If you use the ATO’s Small Business Superannuation Clearing House to pay your super, you’ll need to make alternative arrangements. Check if your current payroll software has super payment functionality. If you need to go with a new provider, transition early to allow for payroll to be aligned with required payment timeframes.
Myth: “I can just change how often I pay my employees”
Payday Super changes when super must be paid, not pay frequency. How often you pay your employees is set by employment contracts, awards or enterprise agreements.
From 1 July 2026, you must pay super each payday, in line with how often you pay wages. So, if you pay wages weekly, you pay super weekly.
Super payments must be received by the employee’s super fund within 7 business days after payday. A payment only counts once it’s received by the fund, not when it’s submitted.
Waiting until day 7 can be risky, especially if a payment is rejected and needs correcting. To give you the most time possible, we recommend making super payments on payday.
If you haven’t already, check out the ATO resources and be prepared well ahead of 1 July:
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/payday-super
Author
May Aung