Payday Super commenced on 1 July 2026, changing when employers must pay super guarantee contributions.
Instead of paying super quarterly, employers must now pay super in line with each payday. This change may place additional pressure on business cash flow, particularly during the July 2026 transition period.
Here is what employers need to know about Payday Super and the steps they should take now.
Super must reach the fund after each payday
Under Payday Super, super guarantee contributions must generally be received by an employee’s super fund within seven business days after payday.
The important word is received. It is not enough to process the contribution through payroll or send it to a clearing house within seven business days. The payment must reach the employee’s super fund within the required timeframe.
Employers should:
- Allow sufficient time for payments to be processed.
- Confirm employee and super fund details are correct.
- Monitor payments for errors or rejections.
- Correct rejected contributions promptly.
- Ensure payroll and clearing-house systems support Payday Super.
The ATO Small Business Superannuation Clearing House closed on 1 July 2026. Businesses that previously used this service must now use a suitable payroll provider, commercial clearing house or super fund payment service.
Why July 2026 may be particularly tight
The final quarterly super payment for the period from April to June 2026 remains due by 28 July 2026.
At the same time, super relating to paydays from 1 July 2026 is subject to the new Payday Super requirements. Businesses that previously paid super quarterly may therefore experience a larger-than-usual cash outflow during July.
Employers should review upcoming pay runs alongside:
The final June quarter super payment.
- BAS and IAS liabilities.
- Employee wages.
- ATO payment-plan instalments.
- Other significant business expenses.
Preparing an updated cash-flow forecast can help identify potential shortfalls before a payment deadline is missed.
ATO debt is also more expensive
The ATO general interest charge rate for July to September 2026 is 11.43% per annum.
General interest charge and shortfall interest charge incurred from 1 July 2025 are also no longer tax deductible. This means leaving an ATO debt unresolved can create a significant and growing cost for a business.
If your business cannot pay an ATO liability in full, it is important to seek advice early. Interest generally continues to accrue even when a payment plan is in place.
Review existing ATO payment plans
If your ATO payment plan was arranged before Payday Super commenced, the cash-flow assumptions used when establishing the plan may no longer be realistic.
Do not wait until an instalment is missed. Reviewing the arrangement early provides more time to:
- Assess whether the repayments remain affordable.
- Update cash-flow forecasts.
- Keep all lodgments current.
- Consider whether the payment arrangement needs to be revised.
- Discuss available options before further debt accumulates.
Director notices require immediate attention
Company directors can become personally liable for certain unpaid PAYG withholding, GST and super guarantee charge liabilities.
If you receive a Director Penalty Notice or another formal ATO recovery notice, contact us immediately. The time available to respond may be limited, and the available options will depend on the company’s circumstances and lodgment history.
Payday Super checklist for employers
Employers should take the following steps:
Confirm the final June quarter super contribution was received by employees’ funds by 28 July 2026.
- Check that payroll and clearing-house processes support super payments after every payday.
- Allow enough processing time for contributions to reach employees’ super funds within seven business days.
- Confirm employee and super fund information is accurate.
- Monitor and correct rejected contributions promptly.
- Update cash-flow forecasts to reflect more frequent super payments.
- Review existing ATO payment plans against the business’s updated cash-flow position.
- Contact us early if the business cannot pay an amount in full or receives an ATO recovery notice.
Need help with Payday Super?
Holzworth Partners can review your Payday Super payment process, business cash flow and existing ATO liabilities. We can also help you understand the practical steps available if your business is experiencing payment difficulties.
Please contact our office before a payment or lodgment deadline is missed.
This information is intended as a guide only and professional advice should be sought for individual circumstances.