The biggest shake-up to Australian payroll in decades is coming. From 1 July 2026, the way all Australian employers pay Superannuation Guarantee (SG) contributions is changing with the introduction of Payday Super.

This reform is especially critical for small businesses, as it will mean a fundamental shift in payment frequency and coincides with the closure of a key payment service. The time to prepare is now.

Here is what Australian employers and small businesses need to know to ensure they are compliant and ready for the future of superannuation.

What is Payday Super and When Does it Start?

The Australian Government’s Payday Super reform is designed to combat unpaid super and provide employees with greater transparency and better retirement outcomes.

If you pay your employees weekly, fortnightly, or monthly, your super payments must now follow that same, more frequent cycle. The key shift is the focus on the date the contribution is received by the employee’s super fund, not just the date it is sent.

Payday Super: Your Small Business Readiness Checklist

Preparing for this change requires reviewing both your financial planning and your administrative systems.

1. Review Your Cash Flow and Budgeting

For many businesses, moving from large quarterly payments to smaller, more frequent contributions is the biggest change.

• Re-forecast: Update your financial forecasts to reflect weekly or fortnightly super outgoings instead of quarterly lump sums.

• Budgeting: Ensure you have the necessary funds available in your bank account for super with every pay run. While the total annual amount is the same, managing more frequent payments can impact day-to-day operating expenses if not planned for.

2. Update Your Payroll Systems and Processes

Manual processes will become unsustainable under the tighter 7-business-day deadline. Automation is key to staying compliant.

• System Check: Contact your payroll software provider (e.g., Xero, MYOB, Reckon) to confirm your current system is Payday Super and SuperStream compliant.

• Automate Everything: If possible, enable the integrated ‘auto-super’ or clearing house feature within your payroll software. This ensures super is calculated, lodged, and paid automatically with each pay run.

• Single Touch Payroll (STP): Ensure your STP is capable of reporting both Qualifying Earnings (QE) and super liability with every pay cycle, as required under the new rules.

3. Clean Up Employee Superannuation Data

Delayed or bounced payments due to incorrect details are the easiest way to incur penalties under the new 7-day rule.

• Verify Details: Double-check every employee’s super fund details (including their unique Superannuation Product Identification Number – SPIN, or USI).

• Stapled Funds: Update your onboarding process to proactively check for an employee’s existing ‘stapled’ super fund through the ATO to ensure contributions go to the correct account immediately.

The Closure of the SBSCH and Your Alternatives

As part of the shift to a more frequent, modern system, the ATO’s Small Business Superannuation Clearing House (SBSCH) will close permanently on 1 July 2026.

Key Dates for Current SBSCH Users:

• 1 October 2025: SBSCH closed to new business registrations.

• 30 June 2026: Final day for existing users to submit contributions through the SBSCH.

• 1 July 2026: SBSCH is fully decommissioned.

If you are a current user, you must transition to a new solution well before the final closure date to avoid non-compliance and payment delays.

What are the Alternatives to the SBSCH?

For small employers, there are three main alternatives that are SuperStream compliant: