From 1 July 2026, the way you pay superannuation is changing. And for many practice owners, it’s a bigger shift than it first sounds.
If you’re used to quarterly payments, Payday Super will require a different frequency, with tighter processes and more attention to detail required.
What is Payday Super?
Payday Super means you’ll need to pay your employees’ super at the same time as their wages.
There will be no more quarterly deadlines. If you run payroll weekly, fortnightly, or monthly, your employees’ super must be paid on that same cycle. On top of that, contributions must reach the employee’s super fund within seven business days of their payday.
What’s changing?
There are a few key changes that you need to know:
- Payment timing. You’ll move from quarterly payments to paying super with every pay run.
- New calculation terminology. New terminology is being introduced when it comes to calculation. Qualified Earnings is a new term that you will see being used. This term encompasses all the payroll categories that super is calculated on.
- Reporting requirements. The ATO is tightening the rules on single touch payroll reporting. There will be more to come on this space.
- Stricter deadlines. Deadlines for payment of super will be a standard rule of 7 business days for cleared funds to be received into the employee’s super fund account. You may hear about a 20-day period, but that is only allowable under exceptional circumstances.
The ATO Clearing House will close on 30 June 2026
If you’ve been relying on the ATO’s Small Business Super Clearing House, you need to look at other options to pay your employees’ superannuation.
That means you’ll need to move to payroll or bookkeeping software that can handle super payments directly. Platforms like Xero and MYOB are already adapting to support this change.
You can read more details about the closure of the ATO Clearing House on the ATO website.
What this means for your practice
This will mean quite a big change for your practice. It will affect your cash flow, systems, and day-to-day processes.
You’ll need to:
- Run super alongside payroll every cycle
- Ensure employee data is accurate to avoid failed payments
- Set up bank feeds and payment integrations
- Keep a closer eye on timing and confirmations
If your bookkeeping isn’t up to date, this will make things even harder than it needs to be.
On the plus side, PayDay Super is the perfect time to review and perfect your payroll procedures and tweak if necessary. For example, how staff submits timesheets: are you getting the information in a timely manner?
How to prepare now
We strongly recommend that you don’t wait until 30 June 2026, as starting early can make a big difference.
Here’s what you can do now:
- Review your payroll and bookkeeping setup
- Check that employee super details are complete and correct
- Speak to your software provider about Payday Super readiness
- Trial paying super each pay cycle to test your cash flow
- Make sure your team understands the new timelines
The Fair Work Ombudsman also provides guidance on employer obligations here: https://www.fairwork.gov.au/pay-and-wages/superannuation.
Need some assistance?
The earlier you prepare for Payday Super, the easier the transition will be. But time is running out, with this change to come into effect on 1 July 2026.
If you have any questions or need assistance with preparing for Payday Super, get in touch with the Amalgam Advisors team today. We can guide you through what’s needed to stay compliant.
