From 1 July 2026 all employers must pay super at the same time they pay wages. Weekly pay means weekly super, fortnightly pay means fortnightly super, monthly pay means monthly super — and contributions must reach the employee’s fund within 7 business days of payday.
This is a major operational change. It affects cashflow, payroll processes and compliance. With a little planning (and the right support) you can stay compliant, avoid costly penalties and reduce admin by automating the right parts of payroll.
Quick Payday Super takeaways
- What changes: Super must be paid on the same day wages are paid and received by the employee’s fund within 7 business days.
- Who’s affected: All employers in Australia, including micro-businesses and sole traders who employ staff.
- Risk: Late or missed payments trigger the beefed up Super Guarantee Charge (SGC), which now includes unpaid super, interest, increased penalties, and administration fees. These amounts are not tax deductible.
- Act now: Check employee fund details, test your payroll systems, model cash flow and choose a clearing house that supports frequent SuperStream payments.
What is Payday Superannuation?
Under Payday Superannuation, SG contributions must be paid at the same time as wages. For most of our clients who pay super monthly, this will mean moving to weekly or fortnightly payments (unless monthly payroll). The reform is designed to speed up super payments and improve transparency.
Why you should start preparing now
Payday Super starts 1 July 2026, but transitioning payroll systems and updating processes takes time. Preparing now lets you identify gaps, streamline workflows and avoid last-minute payroll stress - and gives your team confidence the new rules will be met.
What the new super requirements mean for your business
Tighter timing
Contributions must reach member accounts within 7 business days of payday — that’s a short window, so reliable processes are essential.
Cash flow impact
Instead of one quarterly lump sum, you’ll budget for smaller, more frequent payments. Model the impact on your cashflow now and build a buffer where needed.
Higher admin frequency
You may currently pay super monthly or quarterly, but under Payday Super you’ll need to pay super every pay run (up to 26 times a year for fortnightly pay, or 52 times for weekly pay)
SuperStream compliance
Payments and messages must be processed via SuperStream. Updated SuperStream standards will provide better error messaging, but only clean data and tested systems will avoid rejections.
ATO monitoring
The ATO will match Single Touch Payroll (STP) data with fund reporting. Mismatches will be flagged quickly, and penalties will follow for late or missing payments.
Practical steps to stay compliant
Confirm employee fund details
Audit super fund ABNs, member IDs and product IDs now. Fix file submission warnings and common data errors to reduce rejections.
Automate payroll or outsource
Manual systems struggle with frequent payments. Automation or outsourcing reduces admin and the risk of human error. BlueRock Payroll can run your payroll and manage super payments so you don’t have to.
Talk to your clearing house/provider
Confirm they support Payday Super frequency and the 7-business-day receipt rule. If you use the ATO Small Business Clearing House, you may need to consider alternatives.
Model cashflow
Run scenarios for weekly, fortnightly and monthly payment cycles. Identify months needing extra liquidity and plan a buffer.
Test end-to-end
Perform end-to-end SuperStream payment tests before July 2026 and confirm contributions reach member accounts within 7 business days.
Communicate with staff
Ask employees to confirm their fund details and explain the benefit of more regular super contributions.
Compliance and penalties - the basics
If contributions aren’t paid on time, the Super Guarantee Charge (SGC) applies. The SGC includes:
- Unpaid super
- Interest on the shortfall (general interest charge / notional earnings)
- An administrative uplift — the ATO’s guidance currently sets a maximum uplift of 60% of the calculated shortfall and interest for each qualifying‑earnings day (the 60% uplift may be reduced in certain circumstances)
- If the SGC isn’t paid promptly, additional penalties apply — 25% of the unpaid SGC, rising to 50% for repeat non‑compliance within two years
Interest continues to accrue on the unpaid SGC until full payment. The SGC amount you pay will be tax‑deductible (note: the interest component and late‑payment penalties are not deductible).
The ATO has indicated reduced penalties may be considered where employers promptly disclose issues. Expect further Practical Compliance Guidance (PCG) from the ATO before or after commencement.
Short answers to common questions
- What if I miss a payment? You’ll owe the SGC and could face further penalties for repeat breaches. Prompt disclosure may reduce penalties.
- Do I need new payroll software? Not always — but you must confirm your payroll system and clearing house can process SuperStream at the required frequency and meet the 7-business-day receipt rule. If they can’t, you’ll need an alternative.
- Will the ATO help? The ATO is increasing guidance and monitoring. They’ve signalled support for employers who proactively disclose issues and will publish more compliance guidance.
How BlueRock Payroll can help
- Payroll health check: We’ll review your payroll setup and run a cashflow model to identify timing risks.
- Data clean-up: We’ll validate and fix super fund data so SuperStream messages succeed first time.
- Clearing house selection & testing: We’ll help you choose and test a clearing house and run end-to-end payments before July 2026.
- Outsourced payroll: Our outsourced payroll team can manage pay runs and super payments so you stay compliant without adding internal admin.
Two ways to take action & ensure payday super compliance
Existing clients? Get in touch with your BlueRock advisor to discuss next steps for payroll changes and cash flow management.
Not a client yet? Speak with BlueRock’s outsourced payroll experts for fast setup and ongoing compliance support. Submit the form below and we’ll get back to you ASAP!
