From 1 July 2026, employers will be required to commence PayDay superannuation.What does this mean:
- When wages are paid to employees, employers will need to make the corresponding superannuation payment to the employee’s fund.
- The payment will align with the payroll cycle – i.e. weekly, fortnightly, monthly.
- The funds must be cleared in the employee’s superannuation account within 7 business days after payday.
- The compulsory superannuation rate will remain at 12%.
Employers should be utilising a clearing house (if not already) to process the payments. These are typically offered within software packages e.g. Xero or MYOB, or alternatively, via the larger retail funds e.g. Australian Retirement Trust.The ATO small business superannuation clearing house is being decommissioned with the closure set for 30 June 2026. Alternatives should now be sought if businesses are utilising the ATO option.
Businesses should also be looking at their internal processes around superannuation payments to refine and set up systems to ensure the superannuation obligations are met on a timely basis.
There is acknowledgement that this will put strain on businesses for cash flow given the current requirement is to pay the superannuation on a quarterly basis.
It is important to work with your professional advisors if there is concern about this.
https://www.ato.gov.au/businesses-and-organisations/super-for-employers/payday-super
Article written by Melinda Timms
2026 IPA Treasurer
Inferno Accounting melinda@infernoaccounting.com
INDUSTRY NEWS
POSTED 04/2026
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