The Australian Government has introduced significant changes to superannuation obligations that will take effect from 1 July 2026. These reforms, known as Payday Super, will impact how and when employers pay superannuation contributions.
What is changing?
Currently, employers pay Superannuation Guarantee (SG) contributions monthly or quarterly. From 1 July 2026, you will need to:
- Pay SG contributions at the same time as salary and wages (aligned with your pay cycle for example, fortnightly pay cycles will be aligned with fortnightly SG contributions).
- Ensure contributions reach employees’ super funds within 7 business days after pay has been processed. Failure to meet these deadlines may result in Superannuation Guarantee Charge (SGC) penalties.
Why is it changing?
The Government’s goal is to:
- Reduce unpaid or late super contributions, which currently amount to billions annually.
- Improve retirement outcomes for employees by ensuring contributions are paid promptly.
- Increase transparency and allow employees to track their super more easily.
How will this impact you?
For individuals
- Your super balance will reflect an accurate amount each pay cycle giving you more awareness of your superannuation performance.
For businesses
- Cash Flow: super payments will occur more frequently, reducing the flexibility of quarterly batching.
- Payroll systems: your payroll software must be updated to process super contributions in sync with wages and report via Single Touch Payroll (STP).
- Compliance: the ATO will have real-time visibility of contributions, making late payments easier to detect.
How can Boyce support you?
We’re here to help you prepare for this transition:
- Payroll review: assess your current processes and identify required changes.
- Software updates: advise on payroll system upgrades to meet STP Phase 2 and Payday Super requirements.
- Cash flow planning: help you manage the financial impact of more frequent payments.
- Compliance guidance: ensure you meet ATO obligations and avoid penalties.
For more details, visit the ATO website or contact your Boyce advisor today to discuss how we can assist with payroll and compliance changes.
