Australia’s superannuation system is about to undergo one of its biggest changes in decades. As part of the government’s ongoing super reform agenda, the Treasury Laws Amendment (Payday Superannuation) Bill 2025 was introduced to Parliament last 9 October 2025. If passed, this legislation will take effect from 1 July 2026, requiring employers to pay super guarantee (SG) contributions at the same time as wages instead of the current quarterly schedule.
Key Details Confirmed
According to the ATO’s draft compliance guidance (PCG 2025/D5) and Treasury’s announcement, the key proposed changes are:
- Payment timing: Employers must pay SG at the same time as salary and wages. Contributions must reach the employee’s super fund within seven business days of payday.
- New concept – Qualifying Earnings (QE): SG contributions and the super guarantee charge (SGC) will be calculated using this new measure of earnings.
- Updated penalties: The SGC calculation and penalty framework will be revised.
- Super fund timeframes: Funds will have three business days (reduced from 20) to allocate or return unallocated contributions.
- SuperStream improvements: Data and payment standards will be upgraded to include faster payments, clearer error messages, and new tools such as the Member Verification Request to reduce rejected contributions.
- Small Business Superannuation Clearing House (SBSCH): Closed to new registrants from 1 October 2025, and to all users from 1 July 2026.
- STP reporting: Employers will be required to report both Qualifying Earnings and Super Liability via Single Touch Payroll (STP).
- Feedback period: Public consultation on PCG 2025/D5 is open until 7 November 2025.
What This Means for Businesses
- Cash flow management
Paying super every payday will affect liquidity and require more disciplined cash flow planning, especially for small businesses.
- Payroll and system updates
Employers will need to ensure payroll software, STP integrations, and super fund interfaces can process contributions within the new timeframes.
- Transition planning
Businesses that use the SBSCH or manual payment methods will need to transition to new systems before July 2026.
- Compliance and record-keeping
Employers who fail to pay super on time may still face SGC liabilities, but the ATO has stated that it will take a risk-based and educative approach in the first year (1 July 2026 – 30 June 2027). Employers who make genuine efforts and correct errors quickly are unlikely to be the focus of compliance action.
The Accountant’s and Adviser’s Role
Accountants and bookkeepers will play an essential role in helping clients prepare for Payday Super. Key actions include:
- System readiness reviews – Ensure payroll, super fund connections, and STP data are aligned with the new requirements.
- Cash flow forecasting – Model how more frequent contributions will affect working capital and business budgets.
- Process design – Create workflows that ensure super is remitted accurately and on time.
- Compliance documentation – Maintain evidence of systems, payments, and correction efforts for the ATO.
- Education and change management – Help clients understand the new timelines, the meaning of Qualifying Earnings, and the importance of proactive cash management.
Avoiding super penalties isn’t just about compliance, it’s about financial rhythm and control. At Supervision, we help businesses put the right systems in place so that cash flow, payroll, and super obligations work in harmony. Our goal is to keep businesses ahead of regulatory change while maintaining clarity and confidence in their financial decisions.
Final Thoughts
The shift to payday super is a landmark reform designed to protect workers’ retirement savings and strengthen Australia’s super system. For employers, it introduces new timing, system, and compliance challenges that require preparation well before July 2026.
Now is the time to assess your systems, update your payroll processes, and speak with your accountant or adviser about what this means for your business. By preparing early, you can ensure a smooth transition and avoid costly last-minute fixes.
