Preparing For Pay Day Super
- Jan 14
- 3 min read
From 1 July 2026 the way superannuation is paid for employees is changing in a big way.
Under the new payday super rules, employers will need to pay super at the same time as wages, rather than quarterly. This means super will need to be processed and paid every pay run.
For many businesses, this will be one of the biggest payroll changes in years, so now is the time to start preparing.
What is payday super?
Currently, super can be paid quarterly, even though wages are paid weekly, fortnightly, or monthly.
From 1 July 2025, super will need to be paid on or before payday. In simple terms, when employees get paid, their super needs to be paid too.
This applies regardless of how often your payroll runs.
Why this matters for cashflow
One of the biggest impacts of payday super is cashflow, instead of setting aside super and paying it once a quarter, businesses will need to have the cash available every pay cycle. For businesses that operate with tight margins and or cash flow issues, this change can feel uncomfortable if they are not ready for it.
The good news is you have time to adjust, but only if you start planning now.
Why you should start processing super monthly now
Even though payday super does not start until 1 July 2025, a smart move is to start processing and paying your super monthly now.
Here’s why this helps:
It smooths out cashflow rather than having large quarterly super bills
It gets you used to seeing super leave the bank more frequently
It highlights any payroll or super setup issues early
It reduces the risk of mistakes or missed payments once the rules change
For businesses already paying wages weekly or fortnightly, monthly super payments are a great stepping stone toward full payday super.
What happens if you don’t prepare?
Leaving this until the last minute increases the risk of:
Cashflow stress
Late super payments
Penalties and interest
Payroll errors that upset staff
Payday super is not just a compliance change, it’s an operational change.
What should you do if you are behind in super payments now?
If your business is already behind in super payments, the key thing is to deal with it early and properly, ignoring it only makes it more expensive and stressful.
Here’s what you should be doing.
1. Work out exactly what is outstanding
First step is getting clear on the numbers.
Which quarters or periods are unpaid or short paid
Which employees are affected
The exact super amounts owing
2. Do not just pay the super directly
This is where a lot of employers go wrong.
If super is late, paying it straight to the super fund does not fix the problem. Late super must be reported to the ATO through a Superannuation Guarantee Charge (SGC) Statement.
3. Lodge Superannuation Guarantee Charge statements
SGC statements need to be lodged for each affected quarter. These include:
The super shortfall
Interest
An administration fee per employee per quarter
Lodging sooner reduces penalties and shows the ATO you are taking the issue seriously. If cashflow is tight, the ATO can set up payment plans. The important thing is that the SGC statement is lodged first as the ATO is far more cooperative when businesses are proactive.
These can be lodged yourself however we strongly recommend getting your tax agent/us to assist as the process is quite manual and if there are any errors it can significanyly delay the processing which will result in more interest being calculated.
4. Pay what you can or set up a payment plan
If they can pay the full amount, do it as soon as possible.
If cashflow is tight, the ATO can set up payment plans. The important thing is that the SGC statement is lodged first. The ATO is far more cooperative when businesses are proactive.
Final thoughts
Payday super is coming whether businesses are ready or not. The businesses that will handle it best are the ones that start adjusting their habits early.
If you are still paying super quarterly, consider moving to monthly payments now. It’s a simple change that can make a big difference to cashflow management and peace of mind when 1 July 2025 rolls around.
If you’re unsure where to start, or want help reviewing your payroll and super setup, now is the perfect time to get advice before the rush hits.
Natalie Lennon
Founder & Director
02 9030 0269
@twosidesaccounting Facebook & Instagram
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