The biggest change in 20 years to how businesses pay super is less than three months away. Is your business ready

Payday Super takes effect on 1 July 2026. It is the biggest change to how Australia's one million businesses pay super since employees gained the right to choose their own fund more than twenty years ago. Here are six tips to help your business prepare.

With less than three months to go until the one million businesses employing staff in Australia must pay superannuation within seven days of wages, superannuation peak body ASFA is urging action now, rather than scrambling in June.

"Employers have already had a long time to prepare for Payday Super. For those who still haven't shifted across to paying super with every pay cycle, we don't underestimate the effort required but the good news is there is still time," said ASFA CEO Mary Delahunty.

ASFA has released a practical six-point checklist to help businesses of all sizes meet their obligations and avoid ATO penalties.

"Payday Super is the most significant change to how employers pay super since 2005, when workers first gained the right to choose their own fund, putting them in full control of where their retirement savings were invested. This meant employers had to pay super to multiple funds rather than just one employer-nominated fund," Ms Delahunty said.

"This is a real milestone moment for the retirement savings of 18 million Australians. Workers will accumulate more simply by being paid super when they earn it, and unpaid super will be harder to hide."

Every dollar paid on payday spends more time invested, and more time earning compounding returns, than under the current quarterly-payment system. For a 25-year-old on an average wage, more frequent payments will mean around $5,000 more in super at retirement.

Payday Super will particularly benefit younger Australians and tradies, who are more than twice as likely to miss out on super payments. More than $5 billion in super is withheld from Australian workers each year.

"Payday Super is great policy, and every part of the employment economy is coming together to make it happen smoothly, from super funds to the government, from the ATO to employers.

"Most employers are ready, and many have already shifted to paying super on payday. But the window to meet the new obligations is closing fast," Ms Delahunty said.

ASFA's six-point checklist for employers

1. Check whether your payroll software is Payday Super-ready. Contact your service provider now to confirm when they will enable the functionality required for Payday Super. Don't assume it will happen automatically.
2. Map your cash flow impact now, not in June. Super will shift from quarterly to every pay cycle. For businesses with weekly or fortnightly payrolls, that is a significant change in payment frequency. Review forecasts and set aside funds accordingly, so that you're not relying on employees' super contributions as a cashflow source.
3. Update your employees' super fund records. Incorrect member account numbers or unique superannuation identifiers (USIs) can cause payment rejections and returned contributions. When that happens, employers will need to identify the error, correct it and resubmit, all within the seven-day window. Getting this wrong will put businesses at risk of having to pay penalties.
4. Understand the new 'qualifying earnings' concept. The earnings base used to calculate SG contributions is changing. Check with your accountant or payroll provider that your calculations will be compliant from 1 July.
5. If you use the ATO's Small Business Superannuation Clearing House, find an alternative immediately. The SBSCH closes permanently on 1 July 2026. Treat your April quarter payment as your last through that system.
6. Speak to your employees about what is changing with their super payments. Workers should know that super will now appear on every pay cycle. Encourage them to check their fund details are current so contributions are not delayed or rejected.

For further information, please contact:

Scott Roberts

ASFA Media Lead

[email protected]

About the Association of Superannuation Funds of Australia (ASFA)

ASFA is the peak policy, research and advocacy body for Australia's superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.

Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia's world-class retirement income system.