From 1 July 2026, Australian employers must pay superannuation contributions at the same time they pay their employees’ wages. The legislation passed parliament in November 2025, giving businesses less than six months to prepare for a fundamental shift in how super is paid.
Currently, employers pay super quarterly, with contributions due 28 days after quarter end. This gives businesses significant cash flow breathing room, holding onto super funds for up to four months before payment is required.
Under the new rules, super contributions must reach employees nominated accounts within 7 business days of payday. If you pay staff fortnightly, you’ll now be making 26 super payments per year instead of four. For weekly payrolls, that’s 52 payments instead of four. The law focuses on receipt date, not payment date. Your super fund must confirm receipt within those seven business days.
The Cash Flow Impact
The shift from quarterly to pay-cycle super represents a significant change in working capital management. Under the current system, if you pay staff fortnightly and your quarterly super is $50,000, you might hold onto those funds for anywhere from two weeks to nearly four months. That money sits in your account, potentially earning interest or covering other expenses.
From July 2026, that same $50,000 is paid out in roughly $4,000 increments every fortnight. The cash never builds up in your account.
Most businesses operate with a working capital buffer to cover day-to-day expenses. If part of that buffer has historically been your super liability sitting in the account, that buffer just got smaller. You need to recalculate what working capital you need when super is no longer providing that quarterly cushion. This might mean adjusting overdraft facilities, building a larger cash reserve, or tightening up debtor collection.
What You Need to Do Now
Review Your Payroll Systems Check whether your payroll software is ready for payday super. Most major platforms are updating their systems but confirm your specific setup will handle the new requirements.
Test Your Payment Processes If you currently use the Small Business Superannuation Clearing House, note that it will be retired from 1 July 2026. You need an alternative clearing house solution that can process payments quickly enough to meet the seven-day requirement. Test your payment workflow end-to-end.
Reforecast Your Cash Flow Model what your cash position looks like when super is paid every pay cycle instead of quarterly. Identify any months where the combination of wages, super, and other regular expenses creates potential cash shortfalls. Then determine whether you need additional working capital facilities or need to tighten up debtor management.
Update Your Business Budget If your current budget assumes quarterly super payments, update it to reflect fortnightly or weekly payments. This gives you a more accurate picture of your cash position throughout the year.
Brief Your Team Make sure your payroll staff, bookkeepers, and financial managers understand what’s changing. If you outsource payroll, confirm your provider is ready and understand any changes to their processes or fees.
The Penalties
Employers that fail to pay super contributions in full on payday will be liable for penalties and charges, including late payment penalties, interest on shortfalls and additional penalties for repeat offenders. The ATO will monitor compliance through Single Touch Payroll Phase 2, which provides real-time reporting. They’ll know immediately if payments are late or missing.
Start Preparing Now
With less than six months until implementation, now is the time to review your systems, test your processes, and reforecast your cash flow. The businesses that will transition smoothly are those that treat this as a strategic planning exercise rather than a compliance box-ticking exercise.
If you need help assessing your readiness, modelling the cash flow impact, or updating your payroll processes, contact the Advivo team.
