Payday Super is coming!!! (What you need to know)

By Nerinda Warner

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What is Changing?

The ATO has announced a big change called "Payday Super."

This means employers will need to pay their staff's super at the same time as they pay wages.

No more quarterly superannuation payments.

These changes start 1 July 2026.

It's important to start planning earlier so you are better prepared for these changes.

Why is this happening?

The goal is simple:

• Employees get their Super faster.

• Less confusion about missing or late payments.

• Better protection for workers' retirement savings.

For businesses, it means payroll needs to run differently. However, with right setup, it's very manageable.

What does this mean for your business?

Here's an easy version:

1. You can't pay super quarterly anymore

   Super will need to be paid each payday (or within 7 days of paying staff)

2. Your payroll system may need updating

   Many payroll programs (Xero, MYOB, etc.) will release updates before 2026. You just need to make sure yours is set up correctly.

3. Cashflow will change

   You'll be paying smaller amounts more oftern, not one big payment every quarter. This often makes budgeting easier once you're used to it.

4. Your internal documents need updating

   This includes:

   - your payroll procedures

   - employee onboarding packs

   - information sheets

   - any HR or induction documents

   These should reflect the new Payday Super timing.

5. There are stronger penalties for late super

   The ATO will be watching your super payments more closely. Paying late can mean interest, extra penalties, and extra admin work. So now is the time to get your processes right.

What should you do now?

A simple checklist:

1. Talk to your payroll provider or bookkeeper

   Make sure your system is ready to pay super on every payday.

2. Review your business policies

   Anywhere your documents say "quarterly super" will need updating.

3. Prepare your staff

   Let your employees know that super will be paid more frequently, this helps with transparency and trust.

4. Plan for cashflow

   Weekly or fortnightly super payments may require a small shift in your budgeting.

5. Stay informed

   More details will be released by the ATO, so make sure you check regular updates and subscribe to the ATO Newsletters.

How Yindyamarra Innovations can help

As a bookkeeping service, I can help you:

• review your current payroll processes

• identify what needs updating

• prepare your business for Payday Super

• ensure your staff and documents are aligned with the changes

This support helps you stay compliant without the stress.

Final Thoughts

Payday Super is a positive step for employees and a great opportunity for businesses to streamline their payroll. Early preparation is always good when preparing for any changes, early preparation will definitely help with Payday Super changes.

Disclaimer

I am not a registered tax agent. This blog is general information only and is based on publicly available updates from the Australian Taxation Office (ATO). This is not financial, legal or tax advice. Please speak with your accountant, BAS agent or payroll provider for advice specific to your business.