(Effective from 1 July 2026)
Paying super once a quarter used to feel like travelling through hyperspace with a mildly reliable navigation system. You’d send a large super payment every three months, hope it landed in the right fund, and occasionally deal with an ATO reminder that suggested it didn’t.
That era is ending.
With the introduction of Payday Superannuation, employers will soon need to pay super on the same day as salary and wages, and contributions must then arrive in each employee’s super fund within seven business days of payday.
This is one of the biggest payroll reforms in decades. It changes how employers run payroll, manage cash flow, and handle superannuation compliance. Quarterly super will become a thing of the past, and the penalties for missing the new timing will be sharper and easier for the ATO to enforce.
This guide explains the new rules, what employers must do, and how to prepare before the 1 July 2026 start date.
Under the new reform, employers must:
Superannuation Guarantee (SG) must be calculated and paid each pay run, not quarterly.
The clearing process must complete within seven business days.
According to the ATO’s official position:
“You must pay superannuation guarantee (SG) at the same time as salary and wages. SG contributions must generally arrive in employees’ funds within 7 business days of payday.”
Source: ATO Business Newsroom – Payday Super Legislation Introduced
This reflects the shift from delayed quarterly administration to near real-time superannuation.
The Government wants to:
reduce unpaid and late super
ensure employees actually receive their super in real time
prevent delayed contributions
support better retirement outcomes
allow the ATO to detect non-payment instantly through STP
From this date, all employers must:
pay super on payday, and
ensure contributions are received by the fund within 7 business days.
| Requirement | Date |
|---|---|
| Payday superannuation begins | 1 July 2026 |
| Clearing house obligations | Must clear within 7 days by this date |
| Software upgrades | Expected through 2025–2026 |
Until then, the current quarterly SG system remains in place.
From 1 July 2026, employers must:
Super is no longer a separate quarterly obligation. It must be processed in the same payroll cycle.
The seven-day window applies to receipt by the fund, not just sending the payment.
Funds that receive contributions late will be visible through ATO data matching.
The ATO has announced improved error messages from super funds to help employers understand:
why a contribution was rejected
what details were incorrect
how to correct and resubmit the payment
New services, including the Member Verification Request (MVR), will allow employers to confirm:
member details
fund information
account status
This will reduce rejected contributions and compliance failures.
The ATO states employers must pay super on the same day as salary and wages.
This is the most important change and the biggest behavioural shift for small businesses.
The seven-day rule applies to when the fund receives the money, not when the employer sends it.
Meaning:
Day 0: You run payroll and pay super.
By Day 7: The employee’s fund must show the contribution as received.
This applies even if:
a clearing house sits in between
the employee’s fund takes time to process
banking delays occur
Employers will need clearing methods and payroll systems that meet this timeframe consistently.
Small businesses with weekly or fortnightly payroll cycles will experience the most change.
Platforms like Xero, MYOB, QuickBooks, and KeyPay will need to:
calculate SG each pay run
submit contributions in real time
integrate with fast-clearing super channels
provide alerts for rejected contributions
Software updates will be rolled out across 2025–2026.
Old-style clearing systems (taking 3–5 days to process) may no longer be suitable.
A super contribution that “sits in transit” risks breaching the 7-day rule — and triggering SGC penalties.
Businesses will need to:
finalise timesheets earlier
approve payroll promptly
ensure bank accounts are funded
resolve rejected super errors quickly
Quarterly super allowed employers to hold SG liabilities for up to three months.
Under the new rules:
super must be paid immediately, and
cash leaves the business weekly or fortnightly
Businesses most affected include:
hospitality
medical practices
construction / trades
childcare
retail
professional services with large staff ratios
Missing the 7-day receipt rule means you have not met your SG obligations.
The Superannuation Guarantee Charge (SGC) includes:
the SG shortfall
10% interest, calculated from payday
$20 administration fee per employee per quarter
the SGC cannot be claimed as a tax deduction
If a super fund rejects a contribution because:
the employee details were incorrect
the fund account was closed
the USI code changed
the member number didn’t match
…the employer must:
correct the issue
resend the payment
ensure it still reaches the fund within the 7-day timeframe
This is why improved error messaging and the Member Verification Request service are critical.
Confirm your payroll provider’s rollout timetable for payday super features.
Weekly and fortnightly cycles will require the strongest discipline.
Ensure fund details are collected correctly to prevent rejected contributions.
Move super from a quarterly lump expense to a weekly or fortnightly outflow.
Teams must know how to handle:
real-time SG payments
rejected contributions
ATO error messaging
7-day fund receipt rules
SMEs should not wait until mid-2026.
The transition will require:
system changes
process redesign
cash flow planning
42 Advisory helps SMEs transition to payday super by providing:
setting up same-day SG payments
integrating super clearing solutions
configuring Xero/KeyPay for payday super
weekly/fortnightly payroll outflow analysis
forecasting SG impact
identifying working capital gaps
payroll workflow redesign
super verification tools
rejected-contribution remediation
payroll health checks
STP alignment
ensuring SG reaches funds within 7 days
With fixed-fee pricing, payroll compliance becomes predictable, structured, and low-risk.
Employers must pay super on the same day as wages from 1 July 2026.
Employees’ super funds must receive the money within 7 business days.
Late or rejected contributions can trigger SGC penalties, which are non-deductible.
SMEs must update payroll systems, processes, approvals, and cash flow management.
Preparing early will avoid disruption and reduce compliance risk.
Or, to borrow from the Hitchhiker’s Guide:
Don’t panic — just start preparing your payroll systems now.
If you’d like 42 Advisory to help you transition to payday super, streamline payroll, or review your SG compliance, get in touch for a payroll readiness assessment.