In case you hadn’t caught up with this yet, if you employ staff, the way you pay their superannuation has now changed.
Since 1 July 2026, employers have moved from paying super quarterly to paying it alongside each pay cycle. For many small businesses, that means super has become a much more regular part of payroll rather than something dealt with several times a year.
As the Small Business Accountant Hobart employers have relied on for more than 25 years, Hills Accounting understands that even relatively straightforward changes can take some getting used to. Now that Payday Super has been operating for a few weeks, it’s now a good time to make sure your payroll and payment processes are working as they should.
What Has Actually Changed?
Payday Super hasn’t increased the Super Guarantee rate, which remains at 12%. What has changed is when the super needs to be paid.
Employers now calculate super on qualifying earnings each payday, and contributions generally need to reach the employee’s super fund within seven business days after payday. Some exceptions apply, including extended timeframes in certain circumstances involving new employees.
That means businesses need to allow enough time for payments to be processed and for any errors to be corrected before the deadline.
Check Your Payroll Processes
Payday Super has also brought changes to Single Touch Payroll reporting.
Employers now need to report additional information through STP each payday, including employees’ year-to-date qualifying earnings and super liability. It’s worth checking that your payroll software is up to date and that pay codes have been mapped correctly.
The ATO’s Small Business Superannuation Clearing House also closed on 1 July 2026, so businesses that previously relied on it need to be using an alternative SuperStream-compliant payment method.
Don’t Forget The Effect On Cash Flow
For businesses that previously paid super quarterly, Payday Super also changes the rhythm of cash flow.
Rather than accumulating the liability and paying it every few months, super is now leaving the business much closer to the time wages are paid.
That may actually make budgeting easier over time, but it’s important that sufficient funds are available every pay cycle. Reviewing your payroll obligations alongside your regular cash-flow planning can help avoid unwelcome surprises.
A Good Time To Check You’re On Track
We’re now several weeks into Payday Super, so employers should have had an opportunity to see how the new system works within their own business.
The ATO has acknowledged that it may take businesses a few pay cycles to adjust and has indicated that employers making a genuine effort to meet their Payday Super obligations won’t be the focus of its compliance activities during the transition.
That doesn’t mean ignoring problems, of course. If something isn’t working properly, now is the time to identify it and get it sorted.
Further Information
The Australian Taxation Office provides more detailed information about Payday Super, including payment timeframes, payroll changes and the transition from quarterly super payments. Click Here For More.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.
For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today
and stay ahead with Hills Insights.
Call 📞 03 6273 7800,
or email admin@hillsaccounting.com.au.
Follow Hills Accounting on Facebook and LinkedIn for updates and practical business tips.