Payday super guide: What it is, when it starts, and how to prepare

Author

The Rippling Team

Published

25 November 2025

Read time

10 MIN

In this article

Payday super is on its way. And it's going to change how every business, big or small, deals with superannuation contributions. The Australian government has confirmed that employers will need to pay super in line with each pay cycle. The new rules start on 1 July 2026.

In this guide, you'll discover exactly what payday super means, when it starts, and what you need to do to make sure your business is ready for it.

Key takeaways

01
Payday super starts 1 July 2026.
02
It requires you to pay super with each pay cycle instead of quarterly.
03
Super must reach the employees’ fund within 7 business days of each payday.
04
The SBSCH closes on 1 July 2026. You’ll need a SuperStream-compliant way to pay.
05
Missing the deadline triggers the updated SGC.
06
Small businesses will feel the change most, especially with cash flow and day-to-day admin.
07
Preparing early, and automating where you can, will make the switch much easier.

What is payday super?

Payday super is a new rule that requires you to pay super in line with each pay cycle. The goal is to pay it with wages. However, the law gives you up to seven business days after payday for it to reach the fund.

On 1 July 2026, this will replace the quarterly super schedule that most businesses follow now. Essentially, this means you won't wait until the end of the quarter to pay your employees' superannuation contributions anymore. You'll make super payments with each pay run instead, whether that's weekly, fortnightly, or monthly.

The Treasury Laws Amendment (Payday Superannuation) Bill 2025 is the legislation behind the change. It was introduced into the Parliament on 9 October 2025 and passed both Houses and received assent on 6 November 2025. The government pushed for this change after years of problems with late and unpaid super, especially amongst casual and lower-paid workers.

The main issue with the old quarterly payment system is the long delay. People earn ordinary time earnings every week or fortnight, but their super typically doesn't reach their fund for months. The goal of payday super is to close that gap.

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Who payday super affects

While some groups will feel the change more than others, payday super touches every part of a workplace.

Employers

Employers will experience the biggest change as the whole super rhythm moves. Transitioning from a quarterly routine to a pay-cycle routine will create more touchpoints, more checks, and less breathing room between payments.

Payroll and HR teams

As the ones who run pay cycles, calculate entitlements, and actually pay super contributions, payroll and HR teams are right in the middle of it all. What is now a quarterly clean-up will become a live task when payday super kicks in. If there’s any kind of error in a pay run, these teams will feel it immediately.

Employees

Employees will feel the change in terms of timing and visibility. They'll receive their super and wages simultaneously. So, they'll be able to see right away if their contributions have been paid correctly and on time instead of waiting for a quarterly update. For workers who’ve experienced their super arriving late or not at all, having it paid to them on payday will be a huge relief.

Contractors or mixed workforces

Some contractors have a right to super. Those who qualify will move into the payday super cycle too, so their super lands as often as their pay does, just like employees. If you run a mixed workforce, the shift to payday super makes the often fine line between employees and contractors even more important, because any errors show up much faster.

Key deadlines and compliance rules

Payday superannuation starts on 1 July 2026.

From then onwards, you’ll need to make SG contributions in line with each pay cycle. Legally, the contribution must get to the employee’s fund within seven business days of payday. This applies to all employers, regardless of the size of their business or how often they run payroll.

The introduction of payday superannuation shrinks the compliance window. With quarterly payments, a contribution you miss might go unnoticed for months. Once payday super starts, however, a missed payment is obvious straight away. In essence, you'll have a lot less time to fix mistakes.

It’s also important to note that the Small Business Superannuation Clearing House (SBSCH) is closing as part of the payday super reform. As of 1 October 2025, the service is no longer open for new registrations. Only businesses already using the service can keep using it during this transition period. After 1 July 2026, the SBSCH is fully offline. Businesses will need to move to another SuperStream-compliant method. For example, payroll software with built-in SuperStream payments or a commercial superannuation clearing house.

Penalties for non-compliance

When payday super starts, the rules get stricter. You’ll still have the superannuation guarantee charge (SGC) to deal with. But how it’s worked out and when it applies won’t be the same.

You’ll have seven business days after each payday to pay super. If you miss the cutoff, the Australian Taxation Office (ATO) treats that payday as having a shortfall. That shortfall triggers the updated SGC. You’ll then be liable for:

The SG shortfall: This refers to the super you didn’t pay on time. It's calculated on your employees' qualified earnings (i.e. salary and wages).
Notional earnings: This is interest that accumulates from the day the super was due until the day you fix the missing payment.
An administrative uplift: This is a penalty that can be up to 60% of the shortfall plus the notional earnings.
A choice loading penalty: This is an extra 25% added to your SGC amount if you pay super into the wrong fund for that payday. You'll still get hit with this penalty even if the super ends up in the right fund eventually.

If you haven't paid the SG charge within 28 days after the ATO sends you a notice, your penalties are likely to get higher. These can reach 25% of the unpaid charge, or even 50% if you’ve had SG issues in the two years prior. Interest will also keep building up until you've paid everything.

Challenges for small businesses

Payday super introduces a new cadence to paying super. The change equates to so much more than just 'paying earlier'. It affects timing, systems, and everyday workloads, too. And small businesses are going to feel it more than most. Here's how (and what to do about it):

Cash flow pressures

With payday super comes more frequent superannuation payments. This will probably change how your cash flow works across the month. Instead of hanging onto super contributions until the end of the quarter, you’ll be sending that money out every pay cycle.

If you're a small business with tight margins, this can add pressure, especially during sluggish periods or seasonal slumps. You’ll need super money ready to go when it's time to pay wages, instead of weeks or months later.

How to manage it

Go over your cash flow management habits so you know exactly how much money leaves the business each pay run.
Make your invoicing cycles shorter so money comes in more often.
Put a little extra cash aside as a buffer so you’re not caught short in busy or high-cost weeks.
Use tools that flag tight cash flow before it turns into a catastrophe.

Outdated payroll systems

Many small businesses use payroll software that’s too old or too limited to deal with payday super. These systems can’t calculate super per payday, automate payments, or send contributions through SuperStream. At least, not without extra steps.

If your software can’t keep up, it's going to slow you down. It also increases the likelihood of mistakes.

How to manage it

Upgrade your payroll software to one that can pay contributions each pay run
Use SuperStream-compliant tools that connect directly with super funds
Run a test pay run before the switch to payday super to check everything works properly
Set reminders and alerts for payday cutoffs

Manual processes and limited admin time

Software aside, lots of small businesses still do super 'by hand.' For instance, using spreadsheets, typing amounts into a clearing house twice, and engaging in long email chains between payroll and bookkeeping.

The processes rely on people instead of systems. And when payday super kicks in, and everything moves faster, these processes will create added stress. Late or missed payments can also become more likely if every step depends on someone remembering to do it.

How to manage it

Use tools that auto-fill details for you, so you’re not typing the same numbers again and again.
Connect payroll with HR and finance so updates happen in one place instead of three.
Build a simple pay-run checklist so nothing gets forgotten when things get chaotic.
Give one person clear ownership of super each pay cycle to avoid crossed wires.

Keeping up with compliance changes

Small businesses don’t always have a dedicated payroll or HR person or team. When the new payday super rules come into force, that gap will probably become more obvious. Learning the new rules once is a challenge in itself. Then there's keeping up with them over time, while also staying on top of the day-to-day operations of your business.

The ATO will keep updating the rules as the new system takes shape. So, a few small shifts in timing or reporting are to be expected along the way. If you don’t stay on top of these changes, falling out of compliance might happen without you realising.

How to manage it

Subscribe to ATO employer updates so you hear about rule changes early on.
Lean on your accountant or bookkeeper for guidance when rules change.
Use payroll software that automatically updates itself when the new payday super rules change.
Keep a short internal ‘cheat sheet’ of current obligations so your team always has the latest info.

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How to prepare for payday super in 7 steps

Even if your current payroll process feels solid, payday super will change how it runs. The shift is going to be a big one, so it doesn't make sense to tackle it overnight. Here are seven simple, practical steps you can work through before 1 July 2026:

Step 1: Map your current payroll and super process

Start by going through how you run payroll right now. For instance, when do you run it? How do you calculate super? When do you send super payments? Who checks the numbers? Which systems do you bounce between?

Write it out as a simple flow on one page:

payroll → super calculation → approvals → payment → reconciliation

You’re looking for three trouble spots:

Delays: waiting for paperwork or waiting for someone to sign things off
Manual steps: spreadsheets, copying numbers, clearing house uploads
Handoffs: payroll to accounts, accounts to the bookkeeper, bookkeeper to the clearing house

Step 2: Identify what needs to change

Next, look at the workflow from Step 1 with payday super in mind. Ask yourself things like:

Which parts only work because you’ve had a whole quarter to deal with them?
Where do things usually fall apart or need fixing?
Which approvals slow you down or turn into time-consuming waiting games?
What breaks when someone is on leave?
Which tasks drain the most time every pay run?

Anything slow or messy isn't likely to survive a seven-day deadline. Once you’ve called out the weak bits, decide what needs urgent fixing and what can wait. It'll make everything that comes next easier to manage.

Step 3: Update your systems

This one's a biggie. Your payroll software needs to do a lot more under payday super. It must be able to:

Work out the super for each payday automatically
Send the super at the same time you run payroll
Push contributions through SuperStream without you uploading anything
Update itself when the rules or rates change
Handle different funds, job types, and any mid-pay-cycle changes

If your payroll software can’t do these things, payday super will be painful. Block off an afternoon to jot down what your current system can and can’t do. You’ll know straight away if you need an upgrade.

If you’re choosing new software, look for:

built-in clearing house support
rule-based automation
an in-depth activity trail
error warnings before you finalise a pay run
reporting that flags issues early on

While you may consider these as bonus features now, under payday super, they're absolute essentials.

Note, a platform that combines payroll, HR, time, leave, and employee data in one system will give you the smoothest transition because every change flows through automatically.

Step 4: Review your cash-flow model

One of the big Payday super changes is when money actually leaves your account. While the total amount leaving your account won't shift, the timing of the spending will. So, your cash flow needs a proper reality check.

A good place to start is by looking at the weeks where costs inflate. For example:

periods with lots of qualifying earnings, like overtime or public holiday rates
seasonal spikes when you have more people working for you
busy periods where rosters blow out
weeks with extra shifts or leave loading

Then look at the other side:

Do your billing cycles match your payroll cycles?
Do clients make a habit of paying late?
Do you have enough of a buffer to cover wages and super without a panic?

It's beneficial to run two quick 'what-if' scenarios:

A normal pay period: Look at a standard pay run. Consider what things will look like when super leaves your account on the same day as wages do.
A busy pay period: Pick a pay period with lots of extra costs. Then see if you’d still be able to comfortably pay wages and super for that pay run.

This step will give you a clear indication of whether you're ready or if you need to tweak your buffer, billing cadence, or both.

Step 5: Educate your team

There's no need for your team to know the legislation word-for-word. Mostly, they need to understand how the new workflow affects their job. Make sure everyone involved in payroll knows:

What the seven-business-day window means
How super ties in to each payday
What happens if a payday super contribution is late
How changes in a person’s role or working hours affect their super
Who checks what, and when

Step 6: Update documentation and policies

Anything in your business that still talks about quarterly super is soon-to-be outdated. When payday super begins, it's important that what your paperwork says matches the new tempo.

Some things that will need updating are:

onboarding guides
employment contracts
payroll instructions
internal approval steps
calendars and reminders
your 'how we run payroll' checklist

The updated documents should reflect:

how super contributions are paid under the payday super system
the new pay-cycle timing
who owns each part of the workflow
what to do if details are missing or an error pops up
how to deal with mid-cycle changes (new starters, pay rises, rate changes, etc)

Step 7: Automate and monitor

Once you’ve updated everything, the best thing you can do from there onwards is take as much manual work out of the process as you can. Automation is what will help you keep pace even on the weeks that are totally flat out. Start with these tasks:

super calculations
sending payments
updating employee details when someone changes roles, hours, or pay
flagging missing fund info
flagging errors before payroll closes
keeping up with changes to the rules

Anything from this list that you still do by hand now will feel ten times harder once payday super arrives. If your HR, time, payroll, and finance all live in a single system, making the move over to payday super becomes so much easier.

Stay payday-ready with Rippling

As you can see, payday super will be a big adjustment. Even more so if your payroll, HR, and employee data are sprinkled over multiple different tools. Rippling makes the change much easier because it gives you everything you need in one place.

Rippling is an all-in-one workforce management platform built on a single source of truth. Payroll, time tracking, onboarding, and employee data all work together, automatically. The system also updates in real time, which is significant when super has to move with wages.

When everything lives in one place, the heavy lifting disappears. Here’s how having Rippling in your corner can help through the entire changeover:

Before payday super starts: You can tidy employee data, fix any missing fund details, and make sure your settings align with the new data and payment standards.
When it goes live: Rippling calculates super contributions automatically with each pay run. And when someone’s hours, role, or pay changes, or when a new employee starts, it will pull those updates into payroll for you.
After things settle: You can monitor pay runs and pick up on issues early on. You can have peace of mind knowing that payroll and super are staying in sync, even as your team changes or grows.

Payday super tightens the timeline. Rippling is how you stay on top of it.

FAQs

Do I need to make payday super changes now?

The payday super regime doesn’t start until 1 July 2026. But it’s a smart idea to get your ducks in a row early! The move to more frequent payments will change how your payroll runs, how fast you need to act, and how your cash flow behaves.

While you don’t need to make the switch today, you do need to check that your systems, processes, and data will cope once you have to pay super with wages. Getting ahead of this now will save stress and sleepless nights later.

What happens if I don’t pay super on payday?

You have seven business days from each payday to make the payday super contribution. If you miss that window, the ATO sees that particular payday as having a shortfall.

The shortfall triggers the updated SGC, as mentioned. This includes the shortfall amount, interest, and penalties. The longer it's unpaid, the steeper it gets.

Will payroll software handle payday super automatically?

The best payroll software will. To take care of payday super properly, your system will need to have the capacity to calculate super for each payday, send payments through SuperStream, update itself when rules change, and sync employee changes instantly.

Good software will automate the process for the most part. This will take most of the manual work off your hands and also reduce the risk of mistakes.

If your current setup can’t do these things, consider it a sign to upgrade before 1 July 2026.

What happens if I overpay or make a mistake?

If you pay too much super, or it goes to the wrong place, don’t panic... but fix it quickly.

If you overpay super, you can usually get it corrected or get a refund. Each super fund has its own process for dealing with contributions paid in error, though. So, the first step is to get in touch with the employee’s super fund and ask them what to do. Some funds will refund the extra amount. Others will hang onto it and apply it to the next period.

If you send super to the wrong fund, you’ll need to contact that fund and ask them to reverse or redirect the payment. Again, each fund deals with this differently.

The SGC will only apply when there is a shortfall. For instance, if you didn't pay the super at all, or if the employee’s correct fund didn't receive the required SG amount by the deadline. If you pay more than you should have by accident, and it goes to the right fund, you won't be penalised.

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Disclaimer

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting and legal advisers before engaging in any related activities or transactions.

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, expert insights, and real customer feedback to inform all of our content. All of our content is reviewed by product experts for accuracy and freshness.