The 5 things you can do to prepare for Payday Super
Preparing for Payday Super means moving from quarterly superannuation payments to paying super at the same time as you pay employee wages. Under these new rules, super contributions must reach employee funds within 7 business days of payday. This becomes law on 1 July 2026
Here are the 5 things you can do top ensure you’re ready for this change.
1. Update Payroll Systems & Technology
Check Software Readiness: Contact your payroll software provider to confirm when they will enable Payday Super functionality.
Automate Payments: Use a payroll system that integrates with SuperStream, allowing you to automate payments alongside each pay run rather than manually processing them.
Move off SBSCH: If you currently use the free Small Business Superannuation Clearing House (SBSCH), think about transitioning to a new provider before it closes on 1 July 2026.
Test your system: Run test pay cycles before 1 July 2026 to identify software or process issues.
2. Review Cash Flow and Processes
Adjust Budgeting: If you’re using a quarterly cash flow model move to a weekly, fortnightly, or monthly model. You will need to ensure you have enough funds to cover both salaries and super payments at each pay cycle.
Review ‘Qualifying Earnings’ (QE): Understand that super will be calculated on ‘Qualifying Earnings’ (which include ordinary time earnings, salary sacrifice, and certain other amounts).
Establish a 7-Day Routine: Create a process that allows you to calculate, report, and pay super so it lands in employee funds within 7 business days.
3. Tidy Up Employee Records
Verify Super Details: Ensure all employee records are up to date, including their tax file number (TFN) and chosen super fund details (USI, member account numbers).
Use Member Verification: Use new ‘Member Verification Request’ (MVR) services within your payroll software to validate fund details before paying, which prevents rejected payments.
4. Prepare for the Transition (Timeline)
Now April 2026: Understand the changes, update employee details, and check your payroll software capability.
April 2026 - June 2026: Finalise the January to March quarter (due 28 April) and transition off the SBSCH if you use it.
1 July 2026: Start paying super on payday.
5. Leverage Early Adoption
The ATO has indicated it will take an educational approach in the first year (2026–27) for businesses making a genuine effort to comply, but penalties (Super Guarantee Charge) will still apply for late or missed payments.
Starting to pay super more frequently can help you identify bottlenecks and get used to the cash flow changes.
If you have any questions please contact me paul@congdonfuzi.com.au