From 1 July 2026, employers will need to pay super on payday, not quarterly.
The key point
- The rule isn’t “send it within 7 days”
- The requirement is that super must reach the employee’s super fund within 7 business days of payday
- That matters because clearing houses and super funds take time to process payments
Practical takeaway
- To reduce the risk of missing the deadline due to processing delays, most employers will need to pay super on payday (or immediately after payroll is finalised)
SG hasn’t changed – but the deadline has
- The Super Guarantee rules themselves aren’t being reinvented
- What’s changing is how often and how quickly super must be paid
- Instead of quarterly payments, super becomes a payday / pay-run obligation
If you don’t comply, it can get expensive fast
If super isn’t received on time, it becomes late super, which can trigger the Super Guarantee Charge (SGC).
SGC is more than “just paying the super late” – it can include:
- the unpaid super amount
- interest (to compensate the employee for late payment)
- administration fees
- ATO penalties (which can be significant depending on behaviour/history)
Deductibility: where many employers get caught
This is a major trap area.
Late super paid direct to the fund
- If you pay super late directly to the super fund, it is generally still tax deductible
- (Even though it may still breach the payment deadline)
SGC paid to the ATO
- If it becomes an SGC liability, the payment is not tax deductible
- Meaning the cost to the business can be materially higher than the original super payment
Why the government is introducing this
Payday Super is designed to:
- reduce unpaid and underpaid super
- improve employee outcomes by getting money into funds sooner
- make non-compliance visible earlier (rather than months later)
What employers should be thinking about now
1) Cashflow
- Super becomes a regular cashflow cost, not a quarterly bill
- That’s a meaningful shift in working capital for many businesses
2) Systems & processes
You’ll need payroll and payment processes that can:
- calculate payroll as normal
- trigger super payments immediately
- avoid delays caused by approvals, batching, or clearing house timing
If you’re using Xero, this should be straightforward as the functionality already exists – if unsure, check with your software provider.
3) Employee super data must be correct before go-live
The biggest risk often isn’t intent – it’s admin errors, such as:
- missing or incorrect fund details
- stapled fund not confirmed
- rejected contributions
- onboarding gaps causing delays
Under Payday Super, these mistakes can create instant non-compliance.
A smart time for an SG compliance review
This reform is the perfect trigger for a basic Super Guarantee health check, including:
- payroll mapping (what’s included/excluded)
- pay item setup
- payment workflow timing
- employee fund details and onboarding process
Need help getting ready?
If you’d like a quick review of your payroll + super process ahead of 1 July 2026, reach out — we can help you get it clean, automated and compliant well before the deadline.
