The payroll changes every employer should be preparing for now
One of the most significant changes to Australia's superannuation system is about to take effect.
From 1 July 2026, employers will be required to pay superannuation contributions at the same time as wages, replacing the current system that allows super to be paid quarterly.
While the change is designed to improve retirement outcomes for employees, it will also require many businesses to review payroll processes, cash flow management and payroll systems.
For employers, the time to prepare is now.
What is changing?
Under the new Payday Super requirements, employers will need to make superannuation contributions each pay cycle rather than accumulating contributions and paying them quarterly.
This means super payments will become part of the regular payroll process, similar to PAYG withholding.
The Australian Government expects the change will reduce unpaid super, improve transparency and ensure employees receive their entitlements sooner.
What does this mean for employers?
For many businesses, particularly small and medium-sized employers, Payday Super may require operational changes.
Areas to review include:
Payroll software and system capability
Payroll processing procedures
Cash flow forecasting
Record keeping and reporting processes
Superannuation payment methods
Employers who currently rely on quarterly payment cycles may need to adjust financial planning to accommodate more frequent payments.
The small business superannuation clearing house is closing
Many small employers are unaware that the Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026.
Businesses currently using the SBSCH will need to investigate alternative solutions for processing superannuation contributions.
If you are unsure how your super payments are currently processed, now is a good time to speak with your payroll provider or accountant.
Practical steps to take now
To prepare for Payday Super, employers should:
Review payroll software capabilities.
Speak with payroll providers about system readiness.
Assess cash flow implications.
Review payroll processes and responsibilities.
Understand how super payments will be submitted and reported after 1 July 2026.
Final thoughts
Payday Super represents one of the most significant payroll compliance changes in recent years.
Businesses that prepare early are likely to experience a smoother transition, while those that delay may face unnecessary disruption and compliance risks.
If you're unsure how the changes will affect your business, the team at Total HRM can help you understand your obligations and prepare your workplace for the transition.