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Payday Super Employer Guide
The biggest shake-up to Australian payroll in decades is coming. From the 1 July 2026 start date to the closure of the ATO Clearing House, here is everything Australian employers need to know to get ready and stay compliant under the new legislation.
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Key changes under Payday Super
Updated
- The Start Date: Payday Super officially begins on 1 July 2026.
- The New Frequency: Employers must pay superannuation contributions at the same time as salary and wages (no later than 7 business days after the payday). The old quarterly deadline is gone.
- The SBSCH Closure: The ATO’s Small Business Superannuation Clearing House (SBSCH) will be retired, forcing businesses to adopt new payment methods.
- Stricter Penalties: The ATO will have increased visibility over non-compliance, with stricter penalties for late or missed payments under the updated Superannuation Guarantee Charge (SGC).
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What is Payday Super?
Payday superannuation means employers must pay their employees’ super guarantee (SG) contributions at the same time as their wages.
For most businesses this changes the frequency of super payments from quarterly to monthly, fortnightly or weekly. The change is designed to help employees receive their super faster and make it easier for them to track payments.
For employers it means adjusting your payroll cycle to include processing super payments in every pay run.
How will Payday Super impact cashflow?
Our modelling shows the average business could need over $124,000 of additional working capital to meet the new payday super requirements. Planning for this early is essential. Use our Payday Super Cashflow Calculator to estimate how much additional working capital your business may need under Payday Super.
Calculate your Payday Super cash flow impact now.
What is the Small Business Superannuation Clearing House (SBSCH)?
The Small Business Superannuation Clearing House (SBSCH) is a free ATO service that lets small businesses pay all employee super contributions in a single transaction, which the ATO then distributes to individual funds.
ATO’s SBSCH closure
One of the most urgent but lesser known changes is the retirement of the ATO’s Small Business Superannuation Clearing House (SBSCH), which is . The government has deemed the SBSCH unfit for the speed and volume of transactions required under Payday Super.
What this means for you
If your business currently relies on this free ATO service to pay super, you will no longer be able to use it once Payday Super comes into effect. You must migrate to a Payday Super compliant software solution or commercial clearing house before the deadline to ensure your employees are paid on time.
Why these changes are important
Payday Super fundamentally changes the rhythm of your cash flow and compliance. It is not just a change in due dates; it is a change in financial liability.
“Received by” rule (critical)
Contributions must be received by the employee’s super fund within 7 business days of payday, not just “sent” by you.
If your current clearing house takes 3-5 days to process payments, you are at high risk of non-compliance before you even start.
End of quarterly “buffer”
You can no longer use superannuation accruals as working capital for up to three months.
Cash must leave your account every pay cycle (weekly or fortnightly), requiring a stricter, real-time cash flow strategy.
Severe penalties for “Day 1” lateness
The grace period is effectively gone. Missing the 7 business day window – even by 24 hours – triggers the new Superannuation Guarantee Charge (SGC).
This now includes daily compounding interest and administrative “uplifts” of up to 60%.
Admin Overload
Manual processing is no longer viable.
Performing a manual bank transfer or file upload every week doubles or triples your payroll admin time.
Automation is the only way to scale this frequency.
How to prepare
July 2026 is the deadline, but your systems need to be ready well before then. Here is your operational checklist:
1. Transition from the SBSCH
The ATO’s clearing house is retiring. You must switch to a commercial alternative that uses real-time (NPP) payments to ensure contributions are received within the strict seven-day window.
2. Verify employee data
Incorrect details cause bounced payments and penalties.
Use digital onboarding tools to verify TFNs and check for stapled funds upfront, preventing errors before they occur.
3. Forecast new cash flow
You will lose your quarterly cash buffer. Use our Payday Super Cash Flow Calculator to model your new operational expenses and ensure you have liquidity for every pay cycle.
4. Automate reporting
Manual processing is too slow for the new deadlines. Ensure your payroll software has built-in STP integration to sync data in real-time and maintain a clear audit trail.
Download our free Payday Super factsheet & checklist
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Frequently Asked Questions
We know this legislation is complex. We’ve collated the most common questions to help clarify your obligations.
Read more FAQs on our Payday Super Questions Answered page.
Yes, Payday Super is mandatory for all employers.
Yes, the SBSCH stopped accepting new business registrations from 1 October 2025 and will close entirely on 1 July 2026. If you rely on the SBSCH, you’ll need to move to an automated payroll solution that facilitates super payments. We suggest signing up to our mailing list to be the first to hear about updates to HeroClear.
During the first year of Payday Super (1 July 2026 – 30 June 2027), the ATO will take a risk-based approach. Employers who make genuine efforts to pay super on time and fix any issues quickly will be considered low risk and unlikely to face penalties. You can learn more about the practical compliance guideline here.
Currently, many businesses pay super quarterly. The new super rules will require payments to be made each time you pay your employees whether that’s weekly or fortnightly. This means more frequent smaller payments instead of a large quarterly one.
Yes. Employment Hero includes a portal for your accountant or bookkeeper to access your payroll information securely. This makes it easy to collaborate and get the support you need.
Stay updated on Payday Super
Sign up to get the latest updates, expert insights and tools to help your business stay compliant – without the stress.
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How Employment Hero is already built to handle Payday Super
Don’t wait for the 2026 deadline. Our platform is already engineered to manage the transition, protecting your business from strict new penalties and administrative overload.
- HeroClear (embedded super-clearing solution): Our embedded HeroClear super clearing solution leverages real-time payments (NPP) to ensure contributions are received within the strict 7 business day deadline.
- Error-free onboarding: We automatically validate TFNs and check for stapled funds during self-setup, preventing data errors that cause bounced payments.
- Automated compliance: Super is auto-calculated and processed directly with every pay run, eliminating manual bank files and ensuring accrual accuracy.
- Employee transparency: Staff can track their contributions in real-time via the Employment Hero Work app, reducing payroll queries and boosting trust.
Disclaimer: The information on this page is current as at 8th December 2025 and has been provided to support employers using the latest information provided by the Australian Government.
