Payday Super: It’s Here!
From 1 July 2026, the way superannuation is handled in Australia will fundamentally change (again!). The reform known as payday super will require employers to pay super guarantee contributions at the same time their staff members receive their wages. This replaces the current quarterly payment cycle.
At Zest, we believe this shift is more than compliance. It is about how you honour the future of your workforce and how you design your payroll, people experience, and risk settings in response.
The Changes
- Super contributions must be paid in line with wage payments. If a staff member is paid on 15 March, the related super must be paid at that time.
- Contributions must reach the staff member’s nominated fund within seven business days of payday.
- All staff, regardless of size, are subject to the same timing requirements.
- The Small Business Superannuation Clearing House will be phased out over time.
The Impacts
For your people:
- Receiving super at the same time as wages strengthens retirement outcomes by increasing investment time in their fund (yes, even a 20‑year‑old should care about this).
- More frequent payment provides transparency and builds confidence that entitlements are being delivered correctly and on time (we are seeing more staff have online and easy access to their super balance, so they will know).
For your business:
- Payroll, HR, finance, and systems currently designed for quarterly remittance or not fit for payday super purposes will need to be reconfigured within 8 months.
- The ATO will have closer to real-time visibility of payments, which heightens non‑compliance risk.
- Timeliness of super payments communicates how a business values its workforce. Errors or delays can damage trust and culture.
The Risks
- Cash flow pressure: Quarterly remitters will need to budget for and bring forward funding for contributions.
- System readiness concerns: Payroll and clearing house processes will need to adapt to new timing requirements and data obligations.
- Increased admin load: Incorrect fund details, chasing details for new starters, late payments, or data errors may attract penalties and unnecessary manual effort.
- Small business vulnerability: Transition complexity and cost may be significant for employers with limited HR or payroll capability.
What Now?
- Conduct an audit of your current super processes, including super calculation methods and payment timing. Your Directors will always be supportive of this, given their obligations in this space.
- Review your payroll provider’s readiness and their plan for implementing payday super requirements. Speak to your payroll system account manager if necessary.
- Confirm accuracy of employee fund data, including stapled fund arrangements and Ordinary Time Earnings coding. Make sure you are not overpaying super — once you’ve overpaid, it’s very difficult to recoup.
- Assess cash flow implications so you can plan for the shift from quarterly cycles to payment with each pay run. Some businesses have already made this transition or are planning to make it prior to 1 July 2026.
- Communicate proactively with your leadership teams and workforce so they understand the change and the benefits.
- Use this moment to review the broader employment experience and ensure your reward and compliance settings reflect your cultural values and purpose.
The Bottom Line
The introduction of payday super is a strong signal about how employee entitlements should be managed in Australia. This reform aligns with Single Touch Payroll reforms and, once again, asks employers to modernise systems and behaviours to support stronger outcomes for their teams.
Organisations that prepare early will reduce compliance risk and strengthen the experience they deliver to their people.
At Zest, we help businesses navigate these shifts with confidence so you can stay focused on building teams that do what they do best.