The Federal Government has announced its intention to introduce new rules that will fundamentally change how employers manage superannuation payments.

From 1 July 2026, under the proposed “payday super” system, super guarantee (SG) contributions will need to be paid at the same time as salary or wages.

The measure is designed to ensure employees see their super more frequently and to reduce the long-standing issue of late or unpaid contributions. While the legislation is still being finalised, businesses should start preparing now, as the shift will have wide-ranging effects on payroll, compliance, and cash flow.

Under the proposal, SG contributions must reach the relevant fund within seven calendar days of payday, aligning super with normal payroll cycles. Super funds themselves will also face stricter deadlines, including processing contributions within three business days rather than the current 20.

Together, these changes are intended to create faster processing, greater transparency for employees, and stronger enforcement for non-compliance.

For businesses, this change is more than just timing.

• The move away from quarterly payments removes a long-relied-on buffer, meaning cash flow will need to be managed much more carefully.
• Payroll processes will also need to be tightened, with every pay cycle carrying compliance obligations.
• Errors such as incorrect member details or contributions bouncing back from funds will need immediate correction, because the proposed redesign of the Super Guarantee Charge (SGC) framework will include daily interest charges on shortfalls and an administrative uplift that could be costly.

Another significant adjustment is the planned closure of the ATO’s Small Business Superannuation Clearing House from July 2026. Employers currently relying on the service as their contribution channel will need to move to alternative clearing houses or direct fund arrangements before the changes take effect.

Despite the challenges, there are also positives.

• Integrating super into regular pay cycles reduces the risk of large liabilities building up, simplifies compliance over the long term, and demonstrates to staff that their financial wellbeing is taken seriously.
• Employers who act early will be in the best position to adapt smoothly and to use the reform as a way of reinforcing trust with employees.

Preparing for Payday Super – Key Actions for Employers

• Review payroll software and systems – check whether they can support more frequent SG lodgements.
• Talk to your providers – payroll vendors and clearing houses should confirm their readiness plans.
• Model the cash flow impact – understand what removing the quarterly buffer means for your business.
• Strengthen processes – put in place clear reconciliation steps and error-handling procedures.
• Train payroll and finance teams – ensure staff know the new rules and how to apply them.

Although the legislation is not yet final, the direction is clear: payday super is coming.

By starting preparations now, businesses can minimise disruption and avoid costly mistakes when the new system takes effect.

At CIB, we are keeping a close eye on the progress of this reform and will continue to update our clients as details are released. If you would like advice tailored to your business or support in preparing your payroll and systems for payday super, our team is here to help.

Reach out to Deepak Sachdev, Director Superannuation and his team directly on 02 4721 6000 for experienced guidance and assistance.