Payday Super Guide for Small Businesses in Australia (2025–2026)

1. What is Payday Super?

Payday Super is a change to the timing of employer superannuation guarantee (SG) payments. Instead of paying super quarterly, employers will pay super at or around the same time as each pay run. The Government has announced that Payday Super is intended to start from 1 July 2026, with final details to be confirmed by the ATO.

The rules about who is entitled to super and how SG is calculated do not change. The main shift is that super contributions move closer to payday instead of being held until the end of the quarter.

For the official announcement, see: Treasury – Payday Super. General employer obligations are outlined on the ATO – Super for Employers page.

2. Why Payday Super is being introduced

Payday Super aims to reduce unpaid and late superannuation. When super is paid quarterly, it can be easy for employers to fall behind, particularly if cash flow is tight. Paying super closer to payday helps:

• Reduce unpaid super: contributions are sent to funds more regularly.
• Improve retirement outcomes: money hits members’ accounts sooner and starts earning returns.
• Align payroll and super: wages and super follow the same pattern rather than separate schedules.
• Give the ATO clearer data: missed payments can be identified faster via Single Touch Payroll reporting.

3. What changes for employers

The easiest way to see the impact is to compare the current quarterly system with the upcoming Payday Super approach:

Late or unpaid super can still trigger the Superannuation Guarantee Charge (SGC). Payday Super does not remove penalties; it simply moves the timing of when super is expected to be paid.

4. Cash flow impacts for small businesses

Under the current quarterly approach, many businesses collect income from customers, hold super in their bank accounts and then pay a larger amount once a quarter. Payday Super removes that buffer. Super leaves your bank account more often, in smaller amounts.

The total annual cost of super does not change, but the timing does. That timing is what affects working capital and the day-to-day feel of cash flow.

• Super cash outflows become more regular and predictable.
• Less “float” is available in the main trading account.
• Seasonal businesses may feel the pressure in quieter months.
• Cash flow forecasts need to factor in super every pay run.

If you want more detail on how these regular outflows affect liquidity, see our article on working capital and cash conversion cycles.

5. How to prepare your business for Payday Super

5.1 Review your payroll software

Some systems are built for more frequent super payments and award handling. Others may need extra steps or add-ons. If you are weighing up Xero, Employment Hero (KeyPay), MYOB, QuickBooks or Payroller, our comparison can help: Top Payroll Services for Small Businesses in 2025.

5.2 Estimate super per pay run

Look at your last quarter’s super total and divide it by the number of pay runs in that quarter. This gives a rough figure for super leaving the account each time you pay wages.

5.3 Consider a separate super holding account

Many businesses already move GST and PAYG into a tax account. Super can be handled the same way. Moving the super portion into a separate account each payday reduces the risk of accidentally spending it.

5.4 Check employee super details

Before super payments become more frequent, make sure employee details are correct:

• Fund names and USIs are current.
• Member numbers are correct and active.
• New staff have chosen a fund or are set up with your default fund correctly.

5.5 Review overall cash flow

Businesses with tight margins or irregular income may need to review pricing, payment terms or how quickly they collect from customers. Pulling together a simple forecast can show whether Payday Super is likely to cause any squeeze points.

6. What to look for in payroll software under Payday Super

When reviewing or upgrading payroll software before Payday Super, check for:

• Accurate SG calculation per pay run using the current super guarantee rate.
• Integration with a super clearing house or inbuilt super portal.
• Clear reporting of wages, SG, funds and payment dates.
• Employee self-service for payslips, leave and super details.
• Award interpretation if you have penalty rates, allowances or complex rosters.
• Alerts for missing or invalid fund information.

For system-specific details, see: Xero Payroll, Employment Hero (KeyPay) and MYOB Payroll.

7. Simple example: small Melbourne employer

A small Melbourne wholesaler pays five staff on a fortnightly cycle:

• Average wages per fortnight: $8,000
• Super guarantee rate: 11.5%
• Super per pay run: $920

Under quarterly super, they would pay around $5,520 in one larger payment at the end of the quarter. Under Payday Super, roughly $920 will leave the account every fortnight instead. The total SG is the same; the main difference is how often the cash moves.