If you run a business with employees, you’re likely aware that superannuation is about to go through one of its most significant reforms in decades. The proposed reform known as “Payday Super” will significantly alter when and how you pay the superannuation guarantee (SG) contributions for your employees. Let’s break it down here.

What is Payday Super?

Under the current system, employers are required to pay superannuation guarantee (SG) contributions at least quarterly, after the end of each quarter. The proposed Payday Super regime will change this by requiring employers to pay SG contributions at the same time employees are paid their wages or salary. The legislation is currently before Parliament and is expected to take effect from1 July 2026.

Why is the Change Happening?

The introduction of Payday Super is designed to reduce unpaid or late super contributions and improve retirement outcomes for employees. By requiring employers to make super payments more frequently, less liability accumulates over time, and employees receive their contributions in their super accounts sooner. While this change delivers clear benefits for employees, it also means business owners will need to adapt to manage super payments more regularly to ensure compliance.

What’s the Current Legislative Status?

On 9 October 2025, The Australian Government introduced the Payday Super legislation into the House of Representatives. The measure is not yet law, but it is progressing through Parliament and is widely expected to pass. If enacted, the new requirements will take effect from 1 July 2026, marking a significant shift in how employers manage and pay superannuation contributions.

Closure of the ATO Small Business Superannuation Clearing House

Another significant change on the horizon is the closure of the ATO’s free Small Business Superannuation Clearing House (SBSCH). From 1 October 2025, no new registrations will be accepted, and from 1 July 2026, the SBSCH will close completely. This means that businesses currently relying on the ATO’s clearing house will need to transition to an alternative solution well before the deadline.

For employers, this change is important to act on early. If you haven’t already moved to a different system, now is the time to plan your transition. Once Payday Super becomes law, having a compliant and efficient process in place will be essential to avoid missed payments, penalties, or cash flow disruption. The SBSCH has long been a convenient and free service, but with its closure, preparing now will ensure a smooth shift without affecting your payroll operations or compliance obligations.

Leading the Way with Early Adoption

At Blackwood Bookkeeping Solutions, we’ve already transitioned our clients to the Payday Super model. By aligning super payments with each payroll cycle rather than waiting until the end of the quarter, businesses are enjoying smoother processes, improved compliance, and greater financial control. The benefits we’ve seen include:

• No more late super payments: Paying super each pay run eliminates the risk of missing quarterly deadlines and keeps businesses consistently compliant.
• Easier cash-flow management: Smaller, more frequent payments make it easier to plan and manage cash flow, avoiding large lump-sum outflows every few months.
• Getting into the compliance habit early: While Payday Super isn’t yet law, implementing the process now builds good habits and ensures systems are ready when the change becomes mandatory.

What You Can Do Now to Prepare

Here are our suggested steps to ensure you’re prepared:

1. Use your payroll software’s super-contribution function where possible. If you are able to submit and pay super contributions through your payroll software, this is the ideal option. It aligns with the payday super regime and reduces manual processing.
2. If that’s not possible – consider a dedicated clearing house (other than the SBSCH). Since the SBSCH is shutting down, you’ll need an alternative. Many super funds offer their own clearing house services, or there are commercial clearing houses you can engage.
3. Review your cash flow and timing. Switching from quarterly payments to pay day aligned payments will change your timing of outflows. Ensure your bank account and cash flow forecasting are set up to cover more frequent super payments.
4. Establish a system for early verification of employee super details. Set up a process to verify employee super fund information as soon as someone joins your business – not just on pay day. Building early verification into your onboarding and payroll setup helps prevent payment details, rejections, and compliance issues.
5. Build internal processes and checklists. Establishing clear internal processes now will make Payday Super far easier to manage later. Set your payroll schedules to automatically trigger super contributions with each pay run, create reminders to verify payments and clearing house uploads, keep reconciliations up to date so any discrepancies are identified quickly, and train your team so they’re prepared to adapt easily to compliance and system change.

Final Words

While the law for Payday Super isn’t yet in force, the direction seems clear. By moving early you’re doing two things: reducing the future risk of late super, and positioning your business with efficient and compliant processes.

At Blackwood Bookkeeping Solutions, we’re here to help you review your payroll system, select the right super contribution method, and ensure your business is ahead of the curve. Reach out if you’d like us to walk through your options.

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