Navigating Superannuation: Current Requirements and Future Reforms for Employers

• Business News
• Superannuation

From 1 July 2026, Payday Super will require employers to pay super within 7 business days of each payday. If you process payroll weekly or fortnightly, this will significantly change your cash flow timing and compliance workload. There is now less than 6 months to go, so it is crucial that preparation begins as soon as possible.

Current Superannuation Requirements for Employers

Quarterly Contributions

Under the existing rules, employers are required to pay super contributions to their employees’ super funds within 28 days of the end of each quarter.

Superannuation Guarantee Rates

The current superannuation guarantee rate is set at 12% of Ordinary Time Earnings.

Superannuation Guarantee Charge (SGC)

If super contributions are not made by the deadline, employers are required to lodge a Superannuation Guarantee Charge (SGC) Statement, pay interest and penalties and lose the ability to claim a tax deduction for the contributions.

Payday Super Laws: A Glimpse into the Future

Payment Frequency

Starting 1 July 2026, the Payday Super laws will mandate that employers align superannuation payments with payroll cycles. This change means contributions will need to be made weekly, fortnightly, or monthly, depending on your payroll schedule.

Employers will have a 7 business day window from the date of each payday to ensure contributions are received by employees’ super funds with limited exceptions.

Superannuation Calculation Method

The way the Superannuation Guarantee (SG) is calculated will also change, shifting from Ordinary Time Earnings (OTE) to a broader definition called Qualifying Earnings (QE). In practical terms, this may mean super is calculated on a wider range of payments than it is today, potentially increasing SG obligations for some employers depending on their pay structures, allowances, and employee arrangements.

Changes to the Superannuation Guarantee Charge (SGC)

With the introduction of more frequent super payments, the penalty structure is changing. With penalties increasing and significant resources being set aside for compliance monitoring, employers will need stronger payroll controls to avoid late payments and additional penalties.

Closure of the Small Business Superannuation Clearing House (SBSCH)

The ATO will also be closing their Small Business Superannuation Clearing House by 1 July 2026. Businesses currently relying on this service will need to transition to alternative clearing house solutions, possibly necessitating a change in payroll system.

What this means for your business

• Cash flow: super payments shift from quarterly to every pay cycle, increasing working capital requirements.
• Admin: more frequent processing and a higher reliance on accurate payroll systems and processes.
• Clearing house change: SBSCH users will need an alternative solution.

Preparing for Transition: Strategic Steps

It is important that businesses begin to plan for this change. It will be the most significant change to employer superannuation requirements since the requirement to use electronic clearing houses more than a decade ago.

Preparing early will help reduce risk and avoid disruption. Key priorities include:

• forecasting cash flow changes and working capital impact
• reviewing payroll systems and super payment automation
• tightening payroll sign-off processes to minimise late or rejected payments

Get ahead of Payday Super by reaching out to our team today. We can review your payroll process, model the cash flow impact, and streamline your super payment workflow so you’re compliant and ready for 1 July 2026.