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1. andrewprice846

   December 29, 2025

   🚨 Important update for small business owners: Payday Super is on the horizon 🚨

   Have you heard about the government’s planned changes to how superannuation contributions are paid? It’s called Payday Super, and it’s one of the biggest shifts to employer super obligations in decades.

   Here’s a breakdown of what’s coming — and what you should be doing now to get ready.

   📌 What is Payday Super (and why now)?
   Currently, most employers pay superannuation contributions on a quarterly basis.

   Under the new rules, from 1 July 2026, employers will be required to pay super at the same time they pay wages or salaries (i.e. per pay cycle).

   Contributions will generally need to arrive in the employee’s super fund within 7 business days of payday.

   The change is intended to reduce unpaid or late super contributions, strengthen retirement outcomes, and improve transparency.

   ⚠️ What this means for small business owners
   You’ll need to revise payroll cycles, cash flow forecasts, and internal processes to make more frequent super payments.

   The Small Business Superannuation Clearing House (SBSCH) will be phased out — it will no longer accept new users and will close completely on 1 July 2026.

   You’ll need a new mechanism to make super payments each pay cycle — ideally integrated with your payroll software.

   Employee data quality will become more critical — incorrect fund details or TFNs could delay contributions and risk non-compliance.

   Expect increased compliance scrutiny: failing to meet these tighter deadlines could expose you to Super Guarantee Charge (SGC) penalties, interest, and administrative charges.

   That said, the ATO has indicated that in the first year, they plan a more lenient “first-year compliance” approach, particularly where employers are making a good faith effort.

   ✅ What you should be doing before 1 July 2026

   Here’s a prep checklist you can start now:
   Stay informed — The draft legislation is out and still under consultation, so details may shift.
   Review your payroll software — Make sure it can handle more frequent super payments, track deadlines, and integrate seamlessly.
   Secure a super payment method — If you currently use SBSCH, identify an alternative clearing house or use a software solution that supports per-payroll super payments.
   Clean your data — Validate employee super fund details, TFNs, and ensure records are accurate to reduce the chance of failed payments.
   Update internal policies & contracts — Ensure employee contracts or agreements reflect the change in super-payment timing.
   Run mock trials — Consider trialling paying super with each pay cycle ahead of the mandatory date, to flush out issues.
   Plan cash flow accordingly — Adjust forecasts to accommodate more frequent super outflows.
   Train your team — Ensure payroll and finance staff understand the changes, deadlines, and consequences of non-compliance.

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