Small businesses need to be aware of an important upcoming change to Super Guarantee obligations that will impact how and when super is paid.
What is changing?
From 1 July 2026, employers will be required to pay Super Guarantee contributions at the same time as salary and wages are paid, rather than quarterly.
The aim is to reduce the amount of unpaid super and ensure employees receive their entitlements sooner.
Key aspects of payday super laws
From 1 July 2026, the new requirements will include:
- Payment timing: Super will need to be processed at the same time as employee wages, rather than being deferred to quarter end
- Processing timeframe: Contributions must be finalised and received by the employee’s super fund within 7 business days of the pay date
- Who it applies to: These rules apply to all employers, effectively turning super into a regular payroll obligation instead of a periodic one
What this means for your business
This change will have a direct impact on cash flow and payroll processes. Instead of setting aside super and paying it quarterly, businesses will need to:
- Ensure sufficient cash is available each pay cycle
- Process super payments alongside wages
- Review payroll systems and processes
While this may require some adjustment, it will also provide a more accurate, real-time view of business cash flow.
Accounting Software makes this easier
The good news is that most modern accounting platforms already support streamlined super payments. Programs like MYOB and Xero have built-in super functionality that allows you to:
- Process super at the same time as payroll
- Use employee data already stored in the system
- Avoid re-entering information into separate clearing houses
- Complete payments quickly and efficiently
For businesses already using these platforms, the transition to same day super should be relatively straightforward.
Final Thoughts
Getting your systems and processes in place early will make the transition much smoother and help avoid cash flow pressure down the track. If you need help reviewing your setup or preparing for these changes, feel free to get in touch.
