With July 1 approaching, now is the time to make sure your business is ready for Payday Super.
Under the new rules, employers will need to pay super at the same time as salary and wages, and contributions must be received by an employee’s super fund within seven business days of payday. This tighter turnaround means your systems and cash flow need to be ready for the shift.
We know you have plenty of compliance to manage, and Payday Super is another significant shift to navigate. To help you get ahead of the change, here are three areas we recommend reviewing.
1. Review your cash flow
Payday Super changes the timing of your outgoings. Instead of making a large quarterly payment, super will become a regular part of each pay cycle.
We suggest reviewing your internal approval process now. If there is usually a delay between running payroll and approving the bank file, that window is about to get much smaller. Check whether your current cash flow and approval workflow can comfortably meet the seven-business-day deadline without creating a bottleneck.
2. Plan for the ATO clearing house closure
The ATO Small Business Superannuation Clearing House (SBSCH) will close permanently on 1 July 2026. This is a major shift for many smaller businesses.
If your business still uses the SBSCH, now is the time to start planning an alternative approach. Ask your payroll team to look at these two options:
• Your payroll software: Check whether your current software has a built-in super payment function.
• A private clearing house: Check whether a private clearing house is the right fit for your business. First Super offers a clearing house solution to registered employers, allowing your team to manage employee payments in one place.
3. Clean up your employee data
More frequent payments mean less room for administrative errors. A small data mismatch that might once have been picked up over a quarter could now delay or reject a contribution, increasing the risk of paying late.
We recommend asking your payroll team to:
• audit employee data to make sure names, TFNs and super fund details are accurate and up to date
• fix onboarding to make sure your process captures fund choice details for new starters early
• establish an error process to make sure your team can fix contribution errors quickly, so the money still reaches the fund on time.
We’re here to help
If Payday Super is raising questions for your business, talk to us. First Super’s Employer Services team can help you understand the changes, review your set-up and prepare for the transition with confidence.
You can also visit our Payday Super Hub for practical guidance, FAQs, key updates and webinar details.
Visit the hub: firstsuper.com.au/payday-super
Call Employer Services: 1300 943 171
Email us: employers@firstsuper.com.au
For the latest information, visit ato.gov.au and search for ‘Payday Super’.
Issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988) as Trustee of First Super (ABN 56 286 625 181). This article contains general advice only and does not consider your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and read the Product Disclosure Statement and Target Market Determination before making any decisions. A copy is available at firstsuper.com.au/pds.
