From 1 July 2026, Payday Super will require employers to pay superannuation at the same time as wages. This replaces the current system, where super can be paid monthly or quarterly.
For employers who already make monthly super contributions, the change is unlikely to have a significant impact. However, for businesses that currently pay super quarterly, the shift to contributions each pay cycle will alter the timing of cash outflows and may require forward planning.
What is changing?
Under the existing rules, quarterly super contributions are due 28 days after the end of each quarter. This can result in larger, less frequent payments.
From 1 July 2026, super will need to be remitted at the same time as each payroll run. This means smaller, more frequent payments, but it also removes the flexibility of holding super amounts until the quarterly due date.
While the overall annual cost of super does not change, the timing of payments will.
Cash flow considerations
For businesses that closely manage cash flow, particularly those with significant payroll costs, the move from quarterly to per pay cycle contributions may create pressure if not anticipated.
One option is to gradually adjust the timing of super payments before the new rules take effect. By increasing the frequency of contributions ahead of 1 July 2026, employers can spread payments more evenly across the year and reduce the risk of a sharp increase in outgoings once Payday Super commences.
This approach will not be necessary for every business. However, for those operating within tighter monthly budgets, an earlier transition may provide greater stability and predictability.
It is important to note that the current quarterly due dates remain legally enforceable until the new regime begins.
Preparing for the transition
In the lead up to 1 July 2026, employers should consider:
- Reviewing current super payment practices
- Assessing the impact of per pay cycle contributions on cash flow
- Exploring whether a phased adjustment would assist
- Confirming payroll systems can support more frequent payments
Early planning will allow businesses to transition in a controlled and considered way, rather than responding to the change at the last minute.
To help illustrate this, please see the graphic below.
The top section shows how quarterly super works today with three months of super payments falling due 28 days after each quarter. The bottom section shows an alternative approach, which can help employers transition to more frequent contributions ahead of 1 July 2026.
The yellow shaded area highlights the optional adjustment window where you can gradually adjust your super payment cycle, spreading payments more evenly and reducing the risk of a sudden spike in outgoings once Payday Super begins.
This isn’t something every business will need to do, but for employers wanting to smooth out cash flow, especially those with tight monthly budgets or significant payroll costs, making the shift earlier can help provide stability and avoid pressure in July. Just remember that the current due dates for super are still enforceable until payday super takes over.
If you would like assistance reviewing your current super cycle or modelling the impact of Payday Super on your business, please contact our team.
