Compliance & Legal

Payday Super

What Is Payday Super?

Payday Super refers to a legislative reform announced by the Australian Government that will require employers to pay superannuation contributions at the same time as they pay salary and wages to employees. This represents a shift from the current quarterly payment obligation to a more frequent, payday-aligned schedule.

The Payday Super initiative will take effect from 1 July 2026 and is designed to ensure that superannuation is paid more regularly, giving workers, especially younger and lower-income earners, better long-term retirement outcomes.

Treasury – Securing Australians’ Superannuation

Why Was Payday Super Introduced?

The shift to payday-aligned super was proposed to tackle common issues in the super system, including:

  • Late or unpaid super contributions
  • Reduced compound interest for employees due to delayed contributions
  • Increased super compliance risks for employers
  • Lack of transparency for employees about super entitlements

According to the Australian Taxation Office (ATO), billions of dollars in super go unpaid every year. Payday Super aims to close this gap and protect workers' entitlements in real-time.

How Does Payday Super Work?

Starting 1 July 2026, employers must:

  • Calculate and pay super contributions concurrently with each pay cycle
  • Submit the required data to the ATO via Single Touch Payroll (STP Phase 2) each pay run
  • Ensure super is received and accepted by the super fund within 7 calendar days of the employee being paid

This means your super clearing house and payroll processes must be able to process and settle payments rapidly, with validated data and minimal delay.

What Employers Need to Do to Prepare

Although the new rules won't take effect until 2026, businesses are encouraged to begin preparations now to avoid last-minute issues. Here are key steps to prepare:

  1. Review your current payroll software
    Make sure it supports payday-aligned super payments, including fast processing and STP Phase 2 compliance.
  2. Audit your employee and super fund data
    Correct errors now to avoid payment rejections or delays when the rules come into effect.
  3. Streamline your pay run process
    Automating timesheets, award interpretation, and super batching will make compliance easier.
  4. Consider early adoption
    Some payroll platforms—like Microkeeper—already support more frequent super payments. Trialling this now can help you fine-tune your processes.
  5. Work with a modern super clearing house
    Choose a provider, like Beam, that supports frequent, secure super transactions with real-time data validation.

How Microkeeper and Beam Help With Payday Super

Microkeeper has partnered with Beam, a trusted Australian super clearing house, to offer Payday Super readiness ahead of the 2026 mandate. Features include:

  • Automated super calculation with award interpretation
  • One-click super batching and submission
  • Real-time validation to reduce rejected payments
  • Support for multiple pay cycles and employment types
  • Secure integration with STP Phase 2 data reporting

Explore Microkeeper’s Payroll & Super Tools

Benefits of Payday Super for Employees and Employers

For employees:

  • Super is paid more frequently, improving compounding interest
  • Less risk of missed or unpaid super
  • Greater transparency and visibility of contributions

For employers:

  • Simplifies compliance with real-time reporting
  • Reduces risk of audits, penalties, and backpay claims
  • Encourages operational efficiency by aligning super and payroll workflows

Challenges & Considerations

  • Cash flow implications: Smaller businesses may need to adjust for more frequent super outflows
  • Increased admin if processes aren't automated
  • Data accuracy becomes critical—invalid fund details can result in payment rejections

That’s why investing in integrated, award-compliant payroll software is essential for a smooth transition.

FAQs About Payday Super

Is Payday Super mandatory right now?

Not yet. It becomes mandatory for all Australian employers from 1 July 2026, but early adoption is encouraged.

Do I have to report super in every STP pay run?

Yes. Under Payday Super, the data submitted in STP must include the relevant super amounts each time an employee is paid.

What happens if super isn’t paid within 7 days?

The employer may be liable for Super Guarantee Charge (SGC) penalties and risk compliance actions from the ATO.

Will casual employees be included?

Yes. Payday Super applies to all eligible employees, including casual, part-time, and full-time workers.

Final Thoughts

Payday Super is one of the most significant changes to Australia’s superannuation system in years. For businesses, it presents an opportunity to modernise payroll, improve employee trust, and reduce compliance risk. But preparation is key.

By automating your payroll and working with partners like Microkeeper and Beam, your business can be ready well before the deadline, and even gain a competitive advantage by leading the charge.

Disclaimer: This information is for general reference only and does not constitute legal, financial, or tax advice. Always consult with a registered tax or payroll professional regarding your obligations.