Key points
- From 1 July 2026, employees must receive their super within seven business days of payday
- Businesses should act now to review and update relevant internal processes to ensure compliance
- Strong internal controls and test pay cycles help prevent penalties and audit risks before go-live
Superannuation Guarantee is a staple in payroll administration and the biggest shake-up in years is around the corner. Is your business ready?
So, what is the change? Currently, many businesses make quarterly contributions, which are received by superannuation funds and allocated to the employee’s account within 28 days after the end of each quarter. As of 1 July 2026, Payday Super will require employers to pay superannuation into an employee’s nominated fund effectively at the same time salary and wages are paid.
With some planning, the additional administrative workload is manageable. But if you leave preparation to the last minute, you risk financial penalties when it goes live.
Unpacking the changes
From 1 July 2026, employers will have seven business days from payday, or Qualifying Earnings (QE) day, for contributions to be received by superannuation funds and allocated to the employee’s account. However, there are some concessions for:
- new employees;
- where an employer makes contribution to a stapled fund that is rejected;
- out-of-cycle payments; and
- exceptional circumstances such as a natural disaster.
If you or your business has not started preparing, here are three actions you can take to stay ahead.
Step 1: Readiness check
Businesses should begin a review of key systems and processes, including:
- Employee onboarding
- Payroll and HR systems
- Pay code configuration and reporting
- Contractor arrangements
- Superannuation clearing house agreements
Starting now gives you time to identify anomalies and make any corrections well before new systems and processes go live. This helps reduce the risk of compliance issues and penalties for late superannuation payments.
Step 2: Align your systems to fill any readiness gaps
Once you’ve completed a readiness check, aligning systems and processes to new requirements is key. Payroll systems may need to be reconfigured to ensure timely and accurate payments of superannuation in line with pay cycles.
Depending on where your business stands, this step can involve:
- Reviewing your onboarding process to ensure minimum requirements include complete and accurate superannuation fund choice and stapling forms, with controls in place if incomplete information is provided.
- Ensuring your payroll software and clearing house providers can handle more frequent transactions.
- Reviewing your pay codes to ensure they align with QE – a new legislatively defined term for specific employee payments.
- Updating contractual and employment terms if needed.
- Considering whether separate processes are required for contractors who come under the extended definition of employees for Superannuation Guarantee purposes.
Step 3: Build your safety net
Robust internal controls support good governance and help to detect issues before they become penalties or impact a business’s reputation.
Effective governance and control systems also reduce the likelihood of time-consuming audits that distract leaders from their core business.
Running test pay cycles before go‑live can help you iron out software and process issues in advance.
What to do next
Payday super changes might look straightforward, but interdependencies across payroll systems, external clearing houses, superannuation funds and regulators mean that a small oversight can have significant flow-on effects.
More frequent transactions and tighter deadlines increase the risk of mistakes. Penalties cost more than preparation, so take proactive steps now to build confidence and ensure compliance. If you have any questions about Payday Super changes and what they might mean for your business, reach out to your Pitcher Partners expert today.
You can also read more about the changes here
