Key Actions for Payroll Compliance and Smooth Transition

From 1 July 2026, major changes to superannuation obligations, known as ‘payday super’, will take effect for all employers. The new timeframes and contribution processes apply to all employers, including companies, sole traders, partnerships, and trusts. These changes mean that super guarantee contributions must now be paid and received by your employees’ super funds within seven days of each payroll cycle. Super will be calculated on employees’ Qualifying Earnings (payment for ordinary hours of work plus any salary sacrifice super amounts). This article outlines the practical steps your business should take to remain compliant and ensure a seamless transition.

Cashflow Management: Ensuring Timely Super Payments

The new rules require super payments to reach employees’ super funds within seven days after processing payroll, rather than the previous quarterly deadlines. To meet these stricter timelines, it is crucial to review and adjust your cashflow management. Consider forecasting super obligations for each pay run, maintaining a buffer in your accounts, and scheduling payments to align with payroll dates. Proactive planning will help avoid late payments and potential penalties.

Payroll System Readiness: Checking and Updating Your Systems

With the introduction of payday super, your payroll software or system must be capable of processing and remitting super contributions promptly after each pay cycle. Review your current payroll processes and consult with your provider to ensure your system is configured for the new payment frequency. It’s also a good time to test automated super payments and ensure that reporting aligns with the updated requirements.

Transition from the Small Business Superannuation Clearing House (SBSCH)

The SBSCH will permanently close on 1 July 2026. If your business currently uses the SBSCH to process super payments, you will need to transition to an alternative super clearing house or direct payment method. Before the closure, download and securely store all historical super payment records from the SBSCH for your compliance files. Investigate other clearing house options early to avoid disruption and ensure your new provider can meet the seven-day payment requirement.

Staff Onboarding: Ensuring Correct Super Fund Options

Effective onboarding of new team members is more important than ever. When bringing on new staff, ensure you offer a choice of super fund and clearly explain the default fund option if they do not nominate their own. Accurate and timely onboarding will help avoid delays in setting up super contributions, ensuring compliance from day one.

Conclusion: Key Actions and Compliance Reminders

The shift to payday superannuation requires careful preparation. Adjust your cashflow processes, confirm your payroll system is ready, transition away from the SBSCH, and update your onboarding procedures. Taking these steps now will help your business stay compliant and support your employees’ retirement savings. For more tailored advice, please contact our office for a review of your payroll and superannuation processes.