This article is general information, current as at September 2026. Payroll and super rules change, so confirm the current position and your own obligations with the ATO or a registered professional before acting.
Payroll has changed more in the last year than it has in a long time, and the biggest change for small business employers is Payday Super, which applies from 1 July 2026. If you employ staff, it is worth understanding what it means and making sure your payroll is set up to handle it. Here is a plain-English guide.
What Payday Super is
Payday Super is the rule that employers must pay superannuation at the same time as they pay wages, rather than quarterly as was previously the case. From 1 July 2026, super guarantee contributions generally need to be received by the employee's super fund within 7 business days of payday, unless an extended timeframe applies.
Note that the clock is about when the money is received by the fund, not when it leaves your account, so allow for clearing time in your process.
The idea behind it is simple: paying super regularly, alongside wages, makes it far less likely that super goes unpaid or falls behind. For employees it means their super is paid steadily through the year. For employers it means a change to how and when super is processed.
The key facts for 2026
- The new rules apply from 1 July 2026. There is no small-business exemption, so they apply to employers of every size.
- The super guarantee rate is 12%, having reached that level on 1 July 2025. That is the top of the legislated schedule, so there are no further scheduled increases.
- Super is now paid on a payday basis, generally needing to reach the employee's fund within 7 business days of payday, rather than quarterly.
How it works with STP
Single Touch Payroll, or STP, is how you already report wages, tax and super information to the ATO each time you run payroll. Payday Super sits alongside it: STP reports the pay, and super now needs to be paid close to each payday.
The practical point is that these are two related but separate obligations. Most modern payroll systems can calculate and report the required payroll information, while your super payment process also needs to be set up to meet the new timing rules. The businesses that find this hardest are usually the ones whose payroll is not set up cleanly in the first place.
What it means for your business
For most small business employers, Payday Super comes down to three things:
- Payroll set up correctly, so super is generally calculated at 12% of qualifying earnings under the new Payday Super rules and processed on a payday basis. Check how your payroll software defines qualifying earnings, so the calculation is right from the first pay run.
- Cash flow planned for it, because super now leaves your account more often. The SG rate has not increased because of Payday Super, but the cash leaves the business sooner and more frequently, so it needs to be in your cash flow forecast.
- Clean records, so your payroll, super and STP all reconcile and you can show that super has been paid on time.
None of this is difficult with the right setup. It becomes a problem when payroll is an afterthought or the records are messy.
Staying on top of it
The safest way through payroll changes like this is to have payroll handled properly: correctly configured software, super processed on time, STP reporting done each run, and everything reconciled.
Hyndes Advisory can assist with payroll processing, bookkeeping and record-keeping as part of bookkeeping and accounts support. Where a service requires registered BAS or tax agent involvement, it is handled through an appropriately registered practitioner.
Frequently asked questions
What is Payday Super?
The rule, from 1 July 2026, that employers must pay super at the same time as wages rather than quarterly. Super guarantee contributions generally need to be received by the employee's super fund within 7 business days of payday, unless an extended timeframe applies.
When did Payday Super start?
The new rules apply from 1 July 2026, and there is no small-business exemption. As the rules are new, confirm the current detail with the ATO or a registered professional.
What is the super guarantee rate in 2026?
12%, having reached that level on 1 July 2025, which is the final legislated step with no further scheduled rises. Under the new Payday Super rules, super is generally calculated at 12% of qualifying earnings and, from 1 July 2026, paid on a payday basis.
How does Payday Super work with STP?
STP reports wages, tax and super each pay run, which you already do. Payday Super sits alongside it: the pay is reported and super is now paid close to each payday. Most modern payroll systems can calculate and report the required payroll information, while your super payment process also needs to be set up to meet the new timing rules.
What do employers need to do?
Set payroll up to calculate super at 12% of qualifying earnings correctly, make sure super reaches the employee's fund within the required timeframe after each payday, and plan cash flow for paying it more often. Keep records clean, and confirm your obligations with a registered professional where unsure.
Does Payday Super affect cash flow?
Yes. Paying super each payday rather than quarterly changes the timing of when the money leaves your account, so build it into your cash flow planning. The SG rate has not increased because of Payday Super, but the cash leaves the business sooner and more frequently.
Get your payroll sorted
If you want payroll, super and STP handled properly so Payday Super is a non-event, book a free 30-minute chat.
Book a free 30-minute chat or call 0403 606 444.