Published in April 2026

What does this mean for employers?

Historically, employers could hold onto superannuation contributions and pay them in a lump sum up to 28 days after the end of a quarter. With the introduction of Payday Super, this grace period is entirely removed. If your payroll cycle is fortnightly, your superannuation payments must also be processed fortnightly.

The ATO has introduced this change to crack down on unpaid super and to ensure employees benefit from compounding investment returns sooner.

How should you prepare?

To avoid strict ATO penalties and the Superannuation Guarantee Charge (SGC), employers need to act now to transition their operations:

1. Cash Flow Management: More frequent super payments mean you can no longer use superannuation liabilities as a quarterly cash flow buffer. You must ensure adequate funds are available in your operational accounts during every pay run.

2. Payroll Software Updates: Ensure your accounting software (such as Xero, MYOB, or QuickBooks) is fully updated to support the new rules, and verify that your Superannuation Clearing House is configured to handle high-frequency direct debits.

3. Single Touch Payroll (STP) Compliance: The ATO will use real-time data from the STP system to match your wage reporting with your superannuation deposits. Any delays will automatically flag your business for an ATO compliance review.

With the End of Financial Year (EOFY) approaching, now is the perfect time to review your payroll processes. If you need assistance configuring your software or reviewing your compliance, please reach out to our bookkeeping and advisory team.