The Australian Government has announced that from 1 July 2026, employers will be required to pay their employee’s superannuation guarantee (SG) at the same time that they pay their employee’s salary, wages and commissions. These new rules have been termed ‘Payday Super’ and represent a significant shift from the current regime where employers can pay superannuation contributions quarterly.
| Here is a summary of the key changes: Alignment of Superannuation Payments: Employers must pay superannuation guarantee (SG) contributions concurrently with employee wages and commissions, aligning superannuation payments with their relevant payroll cycle (weekly, fortnightly, or monthly). Timing of Superannuation Payments: Employers must ensure funds reach nominated superannuation accounts within 7 business days of the wages and/or commission payment occurring. Removal of the SBSCH: The Small Business Superannuation Clearing House (SBSCH) will be closed, meaning employers will need to manage their super contributions directly. First Contributions Timeline: There is an exception for new employees’ meaning that their first superannuation contributions can be made within 20 business days of hiring. Stricter Penalties: The Superannuation Guarantee Charge (SGC) will compound interest on late payments, with no grace periods provided. |
What do members need to do?
REEF encourages members to plan ahead and review your payroll systems and superannuation processes to be ready for this change from 1 July 2026.
From 1 July 2026, you will need to ensure that when you are processing payroll, you also make payment of employee’s applicable superannuation guarantee on any payments made, such as on salary, wages or commissions.
While it is not a legal requirement, REEF would encourage you to commence paying superannuation at the same time as you pay salary, wages and commissions so that you are ready to comply with the 1 July 2026 requirements.
Members that outsource their payroll function should ensure that your providers are aware of the changes so that you are compliant with the new requirements.
If you require any further information on ‘Payday Super’, we encourage you to speak with your bookkeeper, accountant or contact the ATO
