The biggest shake-up to superannuation in years is around the corner. Is your business ready?
With some planning, the additional administrative workload from Payday Super is manageable. But if you leave preparation to the last minute, you risk financial penalties when it goes live on 1 July 2026.
A quick recap – Payday Super will require employers to pay superannuation into an employee’s nominated fund effectively at the same time salary and wages are paid.
Currently, many businesses make quarterly contributions, which are received by superannuation funds and allocated to the employee’s account within 28 days after the end of each quarter.
From 1 July 2026, employers will have seven business days from payday, or Qualifying Earnings’ (QE) day, for contributions to be received by superannuation funds and allocated to the employee’s account, with concessions for:
- new employees;
- where employer makes contribution to a stapled fund that is rejected;
- out-of-cycle payments; and
- exceptional circumstances such as a natural disaster.
If you have not started preparing, here are three critical actions you can take immediately to stay ahead.
Step 1: Readiness check
The first step can be started today – begin a review of key systems and processes, including:
-
Employee onboarding
- Payroll and HR systems
- Pay code configuration and reporting
- Contractor arrangements
- Superannuation clearing house agreements
Starting now gives you time to identify anomalies and correct issues well before new systems and processes go live. This helps reduce the risk of compliance issues and penalties for late superannuation payments.
Step 2: Align your systems
Aligning systems and processes to new requirements is key. Payroll systems may need to be reconfigured to ensure timely and accurate payments of superannuation in line with pay cycles.
This step may involve the following:
- Reviewing your onboarding process to ensure minimum requirements include complete and accurate superannuation fund choice and stapling forms, with controls in place if incomplete information is provided.
- Ensuring your payroll software and clearing house providers can handle more frequent transactions.
- Auditing your pay codes to ensure they align with QE– a new legislatively defined term for specific employee payments.
- Updating contractual and employment terms as necessary.
- Considering whether separate processes are required for contractors who come under the extended definition of employees for Superannuation Guarantee purposes.
It may be necessary to get professional advice from finance, tax, human resources and legal teams to support the business.
Step 3: Build your safety net
Robust internal controls support good governance and help detect issues before they become penalties or reputational threats.
Effective governance and control systems also reduce the likelihood of time-consuming audits that distract leaders from their core business.
Running test pay cycles before go‑live can help you iron out software and process issues in advance.
It’s not as simple as it looks
Payday super might look straightforward, but interdependencies of payroll systems, external clearing houses, superannuation funds and regulators mean that a small oversight can have significant flow-on effects.
More frequent transactions and tighter deadlines increase the risk of mistakes. Penalties cost more than preparation, so take proactive steps now to build confidence about your new operating rhythm.
By Anthony Kazamias, partner at Pitcher Partners Brisbane
