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Payday Super in Australia: What Small Businesses Need to Know Before 1 July 2026

Payday Super becomes mandatory on 1 July 2026, meaning employers must pay superannuation on payday rather than quarterly. This is one of the biggest payroll and cashflow changes in years, and it affects every employer in Australia, especially small businesses, tradies, and sole traders with staff.

In this guide, we break down exactly what’s changing, why it matters, and how to prepare. As a trusted Sydney and Central Coast bookkeeping and vCFO partner, Business By Numbers is here to help you stay compliant, stress-free, and financially confident.

What Is Payday Super? (Definition for 2026)

Payday Super is a reform legislated through the Treasury Laws Amendment (Payday Superannuation) Act 2025. Under the new rules:

This replaces the current quarterly contribution deadlines.

The reform is supported by updates to STP reporting and super fund processing rules and applies to weekly, fortnightly, and monthly pay cycles.

When Does Payday Super Start?

The start date is 1 July 2026.

From that date, all Australian employers must comply with the new payment timing requirements.

Why Is Payday Super Being Introduced?

The ATO and Treasury introduced Payday Super to:

While the changes benefit employees, they also significantly affect employer cashflow and admin processes.

Key Changes Small Businesses Must Understand

Below is a clear list of the major changes every employer needs to prepare for.

1. Super Must Be Paid on Payday (or Within 7 Business Days)

Under the new rules, most super payments must be made at the same time as wages, or within a strict seven-business-day window.

This will tighten cashflow for many small businesses that previously used quarterly payments to create breathing room.

2. “Qualifying Earnings” Will Replace Current OTE Rules

The reform introduces the concept of qualifying earnings, a standardised basis for calculating SG.

This ensures super is calculated consistently across all pay periods and helps align payroll and superannuation reporting.

3. Transitional Allowances Will Be Limited

There will be a few narrow exceptions, such as:

However, these are temporary and restricted, employers cannot rely on them long-term.

4. The Small Business Superannuation Clearing House (SBSCH) Is Closing

This is one of the biggest operational changes.

All small businesses using the SBSCH must migrate to a new solution before the deadline.

Why Payday Super Will Impact Cashflow Significantly

Many small businesses currently pay super quarterly, giving them flexibility in managing working capital.

Under Payday Super:

This makes cashflow forecasting and financial planning essential.

How to Prepare for Payday Super (Step-by-Step Guide)

Below is a practical preparation checklist designed specifically for small business owners and tradies.

1. Review and Update Your Cashflow Forecasting

Understanding the cashflow impact is critical.

As a Jazoodle Business Advisory Partner, Business By Numbers uses Jazoodle’s automated forecasting tools to:

This makes forecasting simple, visual, and reliable — especially for trades and small businesses with fluctuating income.

2. Ensure Your Payroll Software Supports Payday Super

Your payroll system must be able to:

Manual or outdated payroll processes won’t meet the new requirements.

3. Transition Away From the SBSCH

Once the SBSCH closes, employers must choose another compliant payment option.

Alternatives include:

a) Payroll software with integrated super clearing

Most modern platforms provide SuperStream-compliant clearing services, including:

This is usually the simplest option.

b) Independent commercial clearing houses

These offer advanced features and integrations. Examples include:

c) Super fund–provided clearing houses

Some super funds offer employer clearing options for their members.
These may suit very small businesses, depending on payment frequency requirements.

Business By Numbers can assess which option is best for your industry, payroll size, and budget.

4. Clean Up Payroll and Bookkeeping Issues Now

If your books, pay categories, super accruals, or timesheets are messy today, Payday Super will magnify the problems.

We strongly recommend cleaning up:

5. Train Your Team on New Payroll Processes

Admin teams, payroll staff, and even owners need to understand:

This change affects every pay cycle, not just quarterly admin.

How Business By Numbers Helps You Prepare for Payday Super

Business By Numbers is a BAS-registered bookkeeping and vCFO partner (BAS Agent #26331974), supporting small businesses, tradies, and SMEs across Sydney and the Central Coast.

We help you:

✔️ Set up Payday Super-ready payroll systems
✔️ Implement super processing that aligns with payday
✔️ Clean up payroll, super, and award issues
✔️ Forecast cashflow with Jazoodle for clear financial visibility
✔️ Transition smoothly from the SBSCH to a better clearing solution
✔️ Stay fully compliant with ATO rules
✔️ Reduce admin stress and avoid penalties
✔️ Build a financial system that supports your business long-term

We’re the friendly accounting tradie mate who sorts your financial mess, gets your books under control, and makes everything feel calm, clear and manageable again.

Final Takeaway: Start Preparing Now to Avoid Stress in 2026

Payday Super is a major reform; one of the biggest the payroll system has seen in decades.

The businesses that prepare early will:

The ones that leave it until the last minute may face penalties, software gaps, cashflow crunches, and rushed migrations.

Business By Numbers is ready to guide you every step of the way.