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On 1 July 2026, the Australian Government is introducing Payday Super. Under the new rules, employers will need to pay super contributions at the same time as wages. This is a major change from the quarterly payments required under the current system, and comes with some new rules around timing and earnings. For small to medium enterprises (SMEs), this means pay processes must change — and you may need to think about the impact on cash flow, payroll processes and compliance.
With Payday Super on its way, we’re looking at the new rules, your business obligations, and how MYOB can help you get ready for 1 July.
Payday Super: The basics
Payday Super is a reform to Australia’s Superannuation Guarantee rules administered by the ATO which goes into effect on 1 July 2026. Under the new rules, businesses with employees need to pay super at the same time as wages (or qualifying earnings). Payments will need to be received by the employee’s super fund within 7 business days of payday. Under the old rules, employers could make these payments just once a quarter.
The ATO is also introducing new rules around late payments, and changing some of the systems used to process payments. SuperStream standards are being updated to support more frequent super payments and reporting, while the Small Business Superannuation Clearing House (SBSCH) will be closing on 1 July 2026.
The new regulations are designed to reduce missing or late payments and give employees more transparency around their super payments.
What Payday Super means for your SME
For employers, while payday super rule changes will make cash flow easier to manage in the long run, the changes may also bring new obligations and potential challenges.
Key obligations for employers:
Super contributions must be received by the employee’s superannuation fund within seven business days of payday, with some exceptions. For example, you generally have up to 20 business days to make the first contribution for a new employee.
Contributions must be calculated based on qualifying earnings, a new term that combines ordinary time earnings (OTE) and other payments. Your super amounts won’t change, only the payment frequency and how the data is sent to the ATO.
If you don’t make super payments on time and in full, your business may have to pay the Super Guarantee Charge.
If you currently use the SBSCH, we recommend that you start transitioning to an alternative solution before the service closes. Treat your April 2026 SBSCH payment as your last.
Potential Payday Super challenges
For small businesses with limited admin resources and tight cash flow, Payday Super changes could pose some challenges. Here’s what it could mean for your business, and how to prepare:
Updating your payroll process
Including super payments in every pay cycle means updating your payroll process and potentially adopting new apps or tools to help. With the SBSCH closing, some SMEs will also need to deal with a new super payment system.
How to prepare:
For simplicity, we recommend not making any Q2 payments in the SBSCH. Plan to stop using it by 28 April and start looking for an alternate payment process — MYOB can help.
Work on new payroll processes before 1 July, so you’re not scrambling to learn new rules at the last minute.
Cash flow complications
While the annual amount paid to super contributions won’t change, the frequency of payments will, and this could make life trickier for some SMEs.
With Payday Super, contributions will need to be received by the employee’s super fund within seven business days of each payday. In effect, this means super must be paid alongside wages on payday. With more payments and less flexibility, it might be time for some new cash flow planning. Starting early can help you avoid a cash-flow shock in July.
How to prepare:
Start testing more frequent payments now, so you’re ready for 1 July.
Experiment with your MYOB analytics tools to clarify cash flow in your business — bank feeds, cash movement reports and budgeting tools could help you understand the potential impact of Payday Super payments.
Compliance challenges
Finally, Payday Super introduces new compliance obligations for SMEs. Under the new rules, if your business misses a super payment, the payment doesn’t reach the employee’s fund within seven business days, or it goes to the wrong fund, you may need to pay a Super Guarantee Charge or a late payment penalty.
How to prepare:
Research the definition of qualifying earnings so you can calculate super payments accurately.
Talk to your accounting or payroll software provider to make sure your system will be able to process super payments.
Get Payday Super ready with MYOB
Switching to Payday Super may sound like a lot of extra work, and if you’re a harried small business owner, that’s the last thing you need. But if you’re an MYOB customer, it doesn’t have to be a stressful experience. MYOB can help you prepare for the change and stay compliant when the new rules hit.
You already have a built-in Payday Super solution
If you’re an MYOB Business Payroll customer, your search for an SBSCH alternative is over. Our payroll solution is already set up to handle Payday Super, at no extra cost to you. This means you’ll have a way to process super payments along with your regular payroll, with no need to find or integrate another payment tool.
Here’s how to start:
If you use the ATO SBSCH, you’ll need to log in to your account and download your payment records before the service closes on 1 July 2026.
To turn on Pay Super, add funds, set default funds, and check payment frequency, read through MYOB’s Payday Super Support Hub for detailed instructions and troubleshooting.
How Pay Super works day-to-day
When you have Pay Super set up in MYOB, managing super payments is simple.
Employers set up a fund for each employee in Pay Super.
From July 1, super will be automatically calculated in the system for each pay run, based on qualifying earnings.
Super payments are authorised and paid through your MYOB platform to the employee’s chosen fund.
Check the Payday Super Support Hub for any issues like paying contractors, correcting payment errors, and setting up payment authorisation.
Set up for Payday Super success
Payday Super represents a significant change to the way businesses make super contributions in Australia. If your small business has had a super payment process in place for years, changing it may feel like a major step — and a major hassle. You want to meet the ATO’s Employer Obligations without disrupting your day-to-day or risking non-compliance.
However, with knowledge, pre-planning and support from MYOB, the switch doesn’t have to be disruptive. Start organising and setting up now, and you’ll be super-prepared by 1 July.
Ready to start? Check out the MYOB Payday Support Hub now.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
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