What is “Payday Super” and how will it affect my business?
From 1 July 2026, the way super is paid in Australia is changing.
Previously, employers could pay super quarterly. Under the new Payday Super rules, super must be paid at the same time as wages (each pay run).
What does this mean in practice?
- Super will need to be processed every payroll cycle (weekly, fortnightly, monthly)
- Payments must generally reach the employee’s super fund within 7 business days of payday
- The super rate doesn’t change (currently 12%)
- You’ll simply be paying it more frequently
Why is this changing?
The goal is to:
- Reduce unpaid or late super
- Help employees see their super sooner and more clearly
- Improve long-term retirement savings outcomes
What do I need to do to prepare?
Most businesses will need to:
- Review payroll processes and software
- Ensure super can be paid each pay run
- Monitor cash flow, as payments will be more frequent
- Stay up to date with ATO guidance
If you’re already running payroll regularly, this is mostly a process change rather than a calculation change.
Will this affect contractors?
No major change here — if a contractor is already eligible for super under current rules (e.g. paid mainly for their labour), super still applies. However, the frequency and timing of payments will also need to be updated to ensure funds are received by contractors within 7 days of invoice payment.
Where can I find more information?
The ATO has detailed guidance available here:
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