What Is Payday Super?

At the moment, employers can pay superannuation at least once per quarter, regardless of whether employees are paid weekly, fortnightly, or monthly.

In practice, this means super is often paid around the same time as BAS, alongside GST and other tax obligations.

That is about to change.

From 1 July, Super Must Be Paid With Wages

From 1 July this year, employers will be required to pay superannuation at the same time as wages or salaries.

Every time you pay ordinary time earnings, the clock starts ticking.

How the New Payday Super Rules Will Work

Under payday super:

• Each ordinary time earnings payment triggers a seven-day deadline
  
• Super contributions must be processed and received by the employee’s super fund within those seven days
  
• This applies whether you pay weekly, fortnightly, or monthly
  

This is a fundamental shift from quarterly super to near real-time super payments.

Are There Any Exceptions?

Yes, but they are limited.

Some exceptions will apply, including:

• New employees with less than two weeks’ tenure
  
• Small or irregular payments made outside the usual pay cycle, such as:
  
  • One-off bonuses
    
  • Expense reimbursements
    

For most standard wages paid through your normal payroll cycle, the seven-day rule will apply.

What Happens If You Miss the Deadline?

This is where payday super becomes serious.

If an employer misses the new seven-day deadline:

• The superannuation guarantee charge becomes payable immediately
  
• It applies from the next calendar day
  
• Interest compounds daily on the shortfall
  

This is no longer a “fix it by the end of the quarter” situation.

Late means late.

Why Payday Super Is Not a Small Change

Payday super is not just a timing tweak.

It will affect:

• Payroll processes
  
• Cash flow management
  
• Admin discipline
  
• Reliance on systems and automation
  

For some businesses, especially those used to managing super quarterly, this will require a mindset shift.

A Cash Flow Reality Check for Employers

For many business owners, quarterly super creates stress.

By the time BAS, GST, superannuation, and income tax are all due, there isn’t always enough left sitting in the bank account.

Payday super should help with this over time.

Instead of facing one large quarterly bill, super becomes a smaller, regular outgoing, aligned with wages.

Practical Tip

If cash flow is tight, set up a separate account and transfer money into it each pay run to cover super and tax obligations. This reduces the risk of spending money that isn’t really yours.

Why Payday Super Is Good for Employees Too

This change isn’t just about employer compliance.

Payday super should significantly reduce the number of employees who:

• Aren’t getting super paid on time
  
• Don’t realise super hasn’t been paid until months later
  
• Have to rely on the ATO to chase unpaid contributions
  

Employees will see super listed on their payslip and know it should hit their super fund within seven days.

That transparency matters.

How Employers Can Prepare Now

This is not something you want to leave until June.

1. Check Your Payroll System

Make sure your payroll software is set up for payday super.

If you use Xero, this will be relatively straightforward. Xero allows super to be paid automatically by deducting funds from your account and transferring them directly to super funds, if configured correctly.

If you use a bookkeeper or payroll provider, speak to them now about how they plan to manage this change.

2. Tighten Your New Starter Process

Delays in getting super fund details will not protect you from penalties.

Make sure:

• New employees provide super fund details promptly
  
• If they don’t make a choice, contributions are sent to your default fund
  
• Your onboarding process clearly sets expectations
  

You don’t want to miss a deadline because someone took too long to return paperwork.

3. Communicate the Change to Your Team

We strongly recommend letting employees know about payday super before it starts.

Explain that:

• Super will still appear on their payslip as usual
  
• It will now be paid to their super fund within seven days
  
• This is a system change, not a pay change
  

Clear communication reduces confusion and unnecessary questions later.

The Bottom Line for Employers

Payday super is a significant shift, not an admin footnote.

From 1 July:

• Super must be paid with wages
  
• Every pay run triggers a seven-day deadline
  
• Late payments attract immediate penalties and interest
  
• Payroll systems and cash flow need to be ready
  

Handled properly, payday super can actually reduce stress and improve compliance.

Handled poorly, it becomes an expensive mistake very quickly.

If you’re not sure whether your current payroll setup is ready, now is the time to check, not after the rules change.