Payday Super reforms
On 18 September 2024, the Australian Government released a Factsheet detailing the upcoming reforms with the Superannuation Guarantee (SG) regime, known as Payday Super.
Are you ready for Payday Super?
From 1 July 2026, the introduction of Payday Super will significantly change how and when employers are required to pay superannuation contributions for your employees. Rather than paying super on a quarterly basis, employers will need to remit super at the same time as wages are paid – every payday. Without early planning, Payday Super can create compliance risks, additional administrative pressure, and unexpected cashflow challenges. Taking steps now will ensure your business is ready well before the changes take effect on 1 July 2026.
Understanding Payday Super requirements
The key change under the Payday Super regime is the requirement to pay superannuation contributions on or before each payday. This will require employers to review their payroll processes, ensure calculations are accurate each pay cycle, and make timely payments to super funds. Failure to meet these requirements may result in penalties and potential reputational damage, so it’s vital to stay informed of legislative updates and deadlines.
Steps to ensure compliance
To support a smooth transition, employers should consider the following actions:
- Review payroll systems: Assess whether your current payroll software can support Payday Super requirements. If not, consult with your Forvis Mazars advisor or payroll provider about necessary upgrades or consider switching to a compliant system.
- Update internal processes: Align pay cycles and super payment schedules and ensure payroll staff are trained on the new requirements. Clear procedures will help reduce the risk of errors and late payments.
- Engage with super funds early: Confirm your super funds are ready to receive more frequent payments. Address any technical integration issues early to avoid delays.
- Monitor and document compliance: Implement regular checks to confirm super is calculated and paid correctly each payday. Maintaining clear documentation will assist in demonstrating compliance in case of audit.
Managing cashflow challenges
Moving from quarterly super payments to payments every payday can affect business cashflow. Practical steps to manage this include:
- Regular cashflow forecasting: Develop and update cashflow forecasts to reflect more frequent super payments and review them alongside each pay cycle to identify potential pressure points.
- Maintain buffer funds: Setting aside funds specifically for super obligations can reduce the risk of missed or late payments.
- Reviewing payment terms: Where appropriate, discuss flexibility with suppliers or lenders to help manage timing differences created by the new payment schedule.
Addressing system and integration issues
System readiness will be a critical factor in successful implementation. Employers should:
- Work closely with advisors and providers: Collaborate with your Forvis Mazars advisor and payroll or accounting software providers to ensure systems are updated and aligned.
- Test before implementation: Conduct thorough testing of payroll calculations and payment workflows before transitioning to Payday Super.
- Seek specialist support where needed: Businesses with complex payroll arrangements may benefit from external support, such as Forvis Mazars, to ensure processes are robust and scalable.
Preparing for Payday Super requires early planning, reliable systems, and disciplined cashflow management. By taking proactive steps now, businesses can reduce disruption, meet their compliance obligations, and support positive outcomes for employees.
As Payday Super legislation continues to evolve, staying informed and seeking timely advice will help ensure your business adapts smoothly and avoids costly mistakes.
For more information on Payday Super, or for advice on managing cashflow and assessing your payroll systems and processes, please contact your usual Forvis Mazars advisor or one of our specialists below.
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Published: 04/03/2026
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.
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