Important Change to Superannuation Rules – Effective 1 July 2026
The Australian Taxation Office (ATO) is introducing new superannuation legislation known as “Payday Superannuation”, which will apply to all employers from 1 July 2026. These changes are significant and will require most businesses to change how and when superannuation is paid. This guide will explain what is changing, what you must do, and what happens if you don’t comply.
What is Payday Superannuation?
Under the current rules, employers generally pay superannuation on a quarterly basis. From 1 July 2026, this will change. Superannuation must be paid each time wages are paid, as part of every pay run.
The ATO requires that superannuation contributions must be received by the employee’s super fund within 7 calendar days of the scheduled pay run. Superannuation is not considered paid when it leaves the employer’s bank account.
As some superannuation clearing houses can take up to 5 business days to process and deposit payments into employee super funds, employers should be processing super on the same day as payroll to ensure the 7‑day deadline is met. Each pay event will trigger a superannuation obligation — there will be no quarterly true‑ups under the new rules.
Who Does This Apply To?
All employers, including small businesses, Company directors receiving wages Family members receiving wages, related entities and trusts If wages are paid, super must also be paid. If wages are paid, super must be paid at the same time.
There are no exemptions for directors, shareholders, or family employees.
What Do You Need To Do from 1 July 2026?
From 1 July 2026, employers must:
- Pay superannuation every time payroll is processed
- Ensure super is received by the employee’s super fund, not just processed
- Use STPcompliant payroll software with an integrated super clearing house
- Review payroll systems and internal processes before July 2026
Important: Super is only considered paid when the funds are received by the super fund. Processing or submitting a payment late may still result in penalties.
What Happens If You Don’t Comply?
Late or unpaid super can result in:
– Superannuation Guarantee Charge (SGC), which includes:
- Unpaid super
- Interest (currently 10% p.a.)
- Administration fees per employee, per pay event
– Loss of tax deductibility (late super is not tax deductible)
– ATO penalties and fines
– Director Penalty Notices (personal liability for directors)
Why Is This Change Happening?
The ATO is introducing Payday Superannuation to:
- Ensure employees receive super earlier and more consistently
- Reduce unpaid super across Australia
- Increase real‑time visibility of employer compliance
What Should You Do Now?
Although this does not start until 1 July 2026, businesses should:
- Begin planning cash flow changes now
- Review payroll and superannuation processes
- Speak with your accountant or payroll advisor about system changes
- Being prepared early will help avoid compliance issues and cash flow pressure.
- Ensure payroll software supports realtime super payments
Closure of the ATO Small Business Clearing House
The ATO Small Business Superannuation Clearing House will close on 30 June 2026. Any business currently using this service will need to transition to STP compliant payroll software with integrated super payments before this date.
How We Can Help
At PPT, we recommend Xero, which is fully compliant with these new requirements.
We can assist with:
- Software setup and transition
- Payroll and superannuation configuration
- Training and implementation support
Early preparation will make this transition significantly smoother.
Want more information?
To discuss how this may impact your circumstances contact PPT on (03) 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
