Implementing Payday Super: a step by step guide for employers

As we approach July 1, 2026, Australian employers are gearing up for a significant change in how they manage superannuation payments. The introduction of Payday Super is set to revolutionise the way businesses handle their employees’ retirement savings. In this guide, we’ll walk you through everything you need to know about Payday Super and how to implement it in your business.

What is Payday Super?

Payday Super is a new initiative announced in the 2023/2024 Federal Budget, aimed at increasing the retirement savings of over 8.9 million Australians. Under this new system, employers will be required to pay superannuation contributions on the same day they pay their employees’ wages, rather than on a quarterly basis. 

They key points to know about Payday Super are:

• It comes into effect on July 1, 2026.
• Superannuation Guarantee (SG) contributions must be paid on “payday”.
• “Payday” is defined as the date when Ordinary Time Earnings (OTE) are paid.
• Contributions must be received by the employee’s super fund within 7 calendar days of payday.

Why is Payday Super being introduced?

The Australian government has introduced Payday Super to:

• Increase retirement incomes and savings for millions of Australians.
• Reduce the chance of non-payment and underpayment of superannuation.
• Make it easier for employees to track their super contributions.
• Simplify payroll processes for employers in the long run.

What do I need for Payday Super?

To prepare for Payday Super, employers will need to:

1. Update payroll systems.
2. Review superannuation obligations.
3. Manage cash flow for more frequent payments.
4. Ensure compliance with new regulations.
5. Communicate changes to employees.

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Let’s break down each of these steps into more details.

Updating your payroll systems

The first and most crucial step in implementing Payday Super is ensuring your payroll system can handle more frequent superannuation payments. Many existing systems will need to be modified or upgraded to accommodate this change. 

Action items:

• Consult with your current payroll provider about Payday Super compatibility.
• If necessary, research and invest in new payroll software that supports Payday Super.
• Ensure your system can calculate and process super contributions with each pay cycle.

Reviewing superannuation obligations

With Payday Super, it’s more important than ever to have a clear understanding of your superannuation obligations. This includes knowing which employees are eligible for super, what payments super is calculated on, and the current Superannuation Guarantee rate. 

Action items:

• Review your workforce to confirm super eligibility for all employees.
• Ensure you’re using the correct Superannuation Guarantee rate (12% from July 1, 2025).
• Verify that all employee super fund details are up to date and compliant.

Managing cash flow

More frequent super payments will require careful cash flow management. Businesses used to quarterly super contributions will need to adjust their financial planning to accommodate potentially weekly or fortnightly payments.

Action items: 

• Update your cash flow forecasts to account for more frequent super payments. 
• Consider setting up a separate account for super contributions to ensure funds are always available. 
• Explore options for working capital finance if needed to manage the transition.

Ensuring compliance

Compliance with Payday Super is crucial to avoid penalties. The ATO will be enforcing the new rules, and employers who fail to meet the 7-day payment deadline may face charges. 

Action items:

• Familiarise yourself with the new Superannuation Guarantee charge (SGC) rules.
• Set up internal processes to monitor and ensure timely super payments. 
• Consider automating super payments to reduce the risk of late contributions.

Communicating with employees

Clear communication with your employees about the changes to super payments is essential. This will help prevent confusion and demonstrate your commitment to their financial wellbeing. 

Action items:

• Prepare a communication plan to inform employees about Payday Super.
• Explain how the changes will affect their pay statements and super contributions. 
• Encourage employees to check their super fund details are up to date.

How Microkeeper can help you prepare for Payday Super

As we approach the July 1, 2026 deadline, many businesses are looking for solutions to make the transition to Payday Super as smooth as possible. That’s where Microkeeper comes in. 

Microkeeper’s advanced payroll system is already Payday Super ready, designed to simplify compliance with the new requirements. By integrating payroll and superannuation processes, Microkeeper allows businesses to automate contributions, reduce administrative burdens, and avoid penalties for late payments. 

One of the key features that sets Microkeeper apart is its seamless integration with Beam Super Clearing House. This integration eliminates the need for data exports, external portals, and paperwork, allowing for streamlined super processing directly within the Microkeeper platform. 

With Microkeeper, you can:

• Automatically process superannuation contributions with each payroll cycle.
• Ensure compliance with the seven-day payment deadline.
• Calculate super contributions in real-time for accuracy.
• Access comprehensive reporting tools for tracking contributions and managing cash flow. 

By choosing Microkeeper, you’re not just preparing for Payday Super, you’re future-proofing your payroll processes. Our platform is designed to adapt to regulatory changes, ensuring that your business stays compliant without the headache of constant system updates. 

As we move towards the implementation of Payday Super, now is the time to ensure your business is prepared. By following this guide and leveraging the right tools, you can turn this regulatory change into an opportunity to streamline your processes and better support your employees’ financial features. 

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Remember, July 1, 2026, might seem far away, but the time to start preparing is now. With Microkeeper by your side, you can face the Payday Super transition with confidence, knowing that your payroll and superannuation processes are in good hands.

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_{The information about Beam in this article has been provided by Precision (ABN 47 098 977 667, AFSL 246 604), the Issuer of Beam.  Microkeeper does not provide advice or a recommendation in relation to Beam or any other clearing house product.  Precision is wholly owned by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL 228 975), trustee of Australian Retirement Trust (ABN 60 905 115 063).  The information about Beam is general information only. It’s not based on the specific objectives, financial situation or needs of your business. So think about those things and read the Product Disclosure Statement (PDS) before you make any decision about Beam products. Contact Microkeeper for a copy of the Beam Clearing House Product Disclosure Statement (PDS).}

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