FAQs on how Payday Super affects your business

The new law called Payday Super will change how you handle superannuation payments starting 1 July 2026. This means you will need to pay superannuation at the same time you pay your employees’ salaries. The purpose of this change is to make super payments clearer and timelier.

With Payday Super, employees can easily track their super contributions and know if their employer is following the rules. As this law takes shape, businesses should start getting ready by checking employee super setups and understanding their new responsibilities. This guide offers important details about Payday Super and how employers can smoothly transition to these changes.

What is Payday Super?

Payday Super is a new law that says employers must pay superannuation contributions when they pay employees’ salaries for their regular work hours. This means you will make super payments every payday instead of quarterly. The goal is to give employees clearer information about their super and hold employers responsible for making timely payments.

When does Payday Super start?

It will start on 1 July 2026. The Federal Government passed the law on 4 November 2025

How can businesses prepare for Payday Super?

ADP is working closely with the Australian Taxation Office (ATO) to get ready for these changes. Here are some steps for employers:

• Check that employee super fund details are correct.
• Encourage employees to keep their super fund information up to date.
• Make sure you collect super fund choices during the hiring process.
• Train your payroll and HR teams about the new rules.
• Review how you handle refunds to ensure any returned payments are sorted within 7 days.
• Confirm that super contributions only cover Regular Time Earnings, as per the rules.

This means you will make super payments every pay day instead of quarterly.
Make sure you collect super fund details during the hiring process.
You don’t need to change your payroll system before 1 July 2026.
Payday Super will require you to make super contributions at the same time as your current pay cycle - every week, two weeks, or month, instead of just four times a year.

How can I get ready for Payday Super now?

Right now, you don’t need to change how you set up payroll, but you can do these things to prepare:

• Check that employee super fund information is correct.
• Talk to your employees about why it's important to keep their super fund info updated.
• Train your payroll and HR staff on the upcoming changes.
• Review your refund processes to meet the new 7-day requirement.
• Plan your cash flow to handle more frequent super payments.

Should I start paying super on payday right now?

You don’t need to change your payroll system to pay super on payday before 1 July 2026. However, consider adjusting your cash flow now to prepare for paying super more often instead of every few months.

What should small businesses know about Payday Super?

Small businesses should start planning their cash flow to include superannuation payments with each payroll. Payday Super will require you to make super contributions every week, two weeks, or month, instead of just four times a year.

What about returned super contributions?

Right now, super funds have 20 business days to manage returned contributions. Starting 1 July 2026, that time will drop to 3 business days, which means you’ll need to process any returned payments much faster.

Citations

1. About Payday Super | Australian Taxation Office