Prepare your small business for Payday Superannuation
Payday superannuation is coming in 2026. Employers will soon need to pay their employees’ super at the same time as wages. Find out what’s changing and how to stay compliant.
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What is Payday Super?
Payday Super means you pay your employees’ super at the same time as their salaries and wages. In effect from 1 July 2026, this reform will help everyone get their super on time. The Small Business Superannuation Clearing House (SBSCH) will be retired, too. Here’s how to prepare for these changes.
Get ready to pay super more frequently
Paying super every pay run might impact your business’s cash flow in the short term - so plan ahead.
Review your payroll processes and systems
Determine if updates are needed to your payroll systems to comply with the new requirements.
Stay on top of deadlines
Avoid potential penalties. Late payments could result in fines, interest, and other charges.
What Payday Super means for your business
You’ll need to update your payroll processes to make super contributions every pay cycle instead of every 3 months. This means a big shift in how you manage employee entitlements and payroll admin. Because the ATO will have a clearer view of your super payments, it’s important to get these right.
Here’s more info from the ATO on how to prepare for Payday Super
Payroll challenges for your business
Your business is likely to face a few challenges with Payday Super, so you’ll want to make sure you’re updating processes, keeping an eye on cashflow and staying on top of deadlines to avoid penalties.
- Aligning super payments with payroll might require streamlined processes to ensure accurate, timely payments
- More payments means you’ll need to manage your cash flow more carefully
- Failure to pay super contributions within 7 days of payday could land you a Superannuation Guarantee charge
How Xero can help with your Payday Super
Change can be tough, but Xero software eases you into the new normal. With its user-friendly design and clever features, Xero’s payroll software will help you stay compliant, reduce admin and keep cashflow in check.
- Smooth your payroll admin with automated calculations so you always pay the right amount of super
- Give your employees autonomy with the Xero Me App and they can log in and check their payments are correct
- Comply with ATO regulations more easily by storing all employee pay records together in the cloud
Read Kate's storyXero became a really critical tool for us as soon as we began to take on more staff. We needed accounting software to assist us in the clean and tight management of the business.
FAQs on payday superannuation
Yes – from July 2026, all Australian businesses that employ staff must adapt their payroll processes to follow the new rules. This is a legal requirement across all business types and industries.
Find more info on the rules in this government factsheetYes – from July 2026, all Australian businesses that employ staff must adapt their payroll processes to follow the new rules. This is a legal requirement across all business types and industries.
Find more info on the rules in this government factsheetThe Australian Government wants to tackle unpaid super contributions and help more Australians retire with the money they’re owed. More frequent payments will make it easier to spot incorrect or missed payments, and will help employers avoid building up financial liabilities they find difficult to pay.
The Australian Government wants to tackle unpaid super contributions and help more Australians retire with the money they’re owed. More frequent payments will make it easier to spot incorrect or missed payments, and will help employers avoid building up financial liabilities they find difficult to pay.
Employees can track their super entitlements and check they’re being paid the right amounts. If they’re being underpaid, they can talk to their employer, the Fair Work Ombudsman, or the ATO. Use Single Touch Payroll (STP) software, like Xero, to allow employees to see year-to-date tax and super information in their ATO online services account.
Learn more about STPEmployees can track their super entitlements and check they’re being paid the right amounts. If they’re being underpaid, they can talk to their employer, the Fair Work Ombudsman, or the ATO. Use Single Touch Payroll (STP) software, like Xero, to allow employees to see year-to-date tax and super information in their ATO online services account.
Learn more about STPSuper contributions must reach your employees’ super account within 7 days of their paydays. This gives the money time to move through the payment systems, including superannuation clearing houses (online gateways that let you pay all your super contributions in one transaction). If you’re late or miss a contribution, you may be given an Superannuation Guarantee charge (SGC), including any interest.
Here’s a government factsheet with more info on chargesSuper contributions must reach your employees’ super account within 7 days of their paydays. This gives the money time to move through the payment systems, including superannuation clearing houses (online gateways that let you pay all your super contributions in one transaction). If you’re late or miss a contribution, you may be given an Superannuation Guarantee charge (SGC), including any interest.
Here’s a government factsheet with more info on chargesThe SBSCH will close on 1 July 2026 as part of the Payday Super reforms. However, from 2025, it will no longer accept new business registrations. If your business currently relies on the SBSCH, you’ll need to transition to a payroll solution that automates super payments, like Xero.
The SBSCH will close on 1 July 2026 as part of the Payday Super reforms. However, from 2025, it will no longer accept new business registrations. If your business currently relies on the SBSCH, you’ll need to transition to a payroll solution that automates super payments, like Xero.
Make the transition as free of stress as possible by choosing the right systems and technology. Xero software helps small business owners simplify their books for paying employees and for general financial reporting, including for the end of the financial year (EOFY).
Find out more about preparing for EOFYMake the transition as free of stress as possible by choosing the right systems and technology. Xero software helps small business owners simplify their books for paying employees and for general financial reporting, including for the end of the financial year (EOFY).
Find out more about preparing for EOFY
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Get ready for the future with Xero
Change is easier with forward-thinking software. Xero uses a paperless system to keep all your payroll and financial records in one place. Log in anytime, anywhere to handle jobs – from paying your team and sending info to the ATO, to creating reports to see how your business is faring.
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Set up your payroll and superannuation in Xero
Xero Central shares the nuts and bolts of setting up your pay runs.
Payroll and employees
Find technical info on setting up your payroll, including paying tax and creating reports.
Superannuation info
Read up on making pension contributions, including connecting with online pension schemes like NEST.
Set up your super
Learn how to set up your employees’ superannuation.
Start using Xero for free
Try Xero free for 30 days, then decide which plan best suits your business.
Prepare for Payday Superannuation with Xero
Xero has all the features you need to manage your small business.
Easy invoicing
Send online invoices as soon as the job is done. Set automatic reminders to spend less time chasing payments.
Simple bank reconciliation
Keep track of your cash flow with daily bank reconciliation. Save time and stay current on your business.
Instant data capture
Automate tasks like entering bills and receipts. Take a photo of receipts or scan bills into Xero via Hubdoc.