From 1 July 2026, Australian employers must pay superannuation on every payday rather than quarterly. The ATO is urging employers to act now
What’s happening: From 1 July 2026, Australian employers must pay superannuation on every payday rather than quarterly. The ATO is urging employers to act now, warning that cash flow planning, payroll system reviews and clearing house transitions all need to happen well before the deadline, not on it.
From 1 July 2026, super must be paid to an employee’s fund on every payday, not quarterly. Once paid, it must be received by the super fund within 7 business days. Super funds then have 3 business days to allocate or return contributions.
The ATO is clear on one point that catches employers out: the clock starts on payday, not on the day you submit the payment. “A payment only counts once it is received by the employee’s fund, not when it is submitted,” ATO Deputy Commissioner Emma Rosenzweig said. “Submitting on day 7 may not allow enough time. You don’t get an extension for rejected payments, so make sure there is enough time to correct any errors and for contributions to reach funds within the 7 business days.”
The practical implication is that employers need to understand their clearing house and payroll processing times, and build in enough runway to catch and fix errors before the deadline passes.
The myths worth clearing up now
The ATO has identified several common misunderstandings circulating among employers right now, and they are worth addressing directly.
The first is that there is still plenty of time. Rosenzweig pushed back on that directly. “While Payday Super doesn’t start until 1 July, don’t wait until the last minute to consider what you need to do to be prepared,” she said. Cash flow planning, payroll system checks and provider conversations all need to happen in advance, not on the day.
The second myth is that employers can simply adjust how often they pay wages to manage the super change. That is not how it works. Payday Super changes when super must be paid, not the frequency of wage payments. Wage payment frequency is governed by employment contracts, awards and enterprise agreements. If you currently pay weekly, super payments will now also be weekly.
The third is a timing misconception: that the ATO will focus compliance action on honest mistakes from day one. Rosenzweig was explicit that this will not be the case in the first year. “Employers who make an honest mistake and take steps to fix it quickly won’t be the focus of ATO compliance action in the first year,” she said. That does not mean ignoring the deadline, but it is meaningful reassurance for employers making a genuine effort to get it right.
The SBSCH is closing for good
This is the detail most likely to catch small business owners off guard. The Small Business Superannuation Clearing House, the ATO’s free super payment service used by hundreds of thousands of small employers, is closing on 1 July 2026. After that date, there is no read-only access and no way to retrieve transaction history.
“If you use the ATO’s Small Business Superannuation Clearing House to pay your super, this service is closing on 1 July and you’ll need to make alternative arrangements,” Rosenzweig said.
The ATO notes that the majority of employers currently using the SBSCH already have super payment functionality in their existing payroll software, which means the transition may be simpler than it sounds. But it still requires checking, and for those who need a new provider, the ATO recommends transitioning early to allow time to align payroll with the new payment timeframes.
Critically, any SBSCH transaction history that employers want to keep must be downloaded before 1 July. Once the service closes, that data is gone.
The ATO has released a Payday Super checklist and a separate checklist for transitioning away from the SBSCH, both available at ato.gov.au/paydayresources. For small business owners, the practical steps are clear.
Review your payroll software now and confirm it can support more frequent super payments. If you are on the SBSCH, contact your payroll provider about switching and download your transaction history before 30 June. Understand your clearing house processing times so you know how much runway you need before the 7-business-day deadline. And review your cash flow to account for super going out with every pay run rather than in quarterly lump sums.
- The ATO has released a checklist on how to transition from the SBSCHThis link will download a file.
- Explore the full range of Payday Super resources at ato.gov.au/paydayresources.
- Keep up to date with the progress of Payday Super at ato.gov.au/paydaysuper.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
