If you've got staff working for you — whether that's a full-timer, an apprentice, or part-timer — there's a change coming on 1 July 2026 that will immediately impact your cash flow. It's called Payday Super. And while the total amount of super you owe your employees isn't changing, the way you pay it — and when — is about to change completely.
Here we cover what it means for your business, and how to make sure you're not caught short.
Right now, you're required to pay your employees' super once every three months. You’ve got 28 days after the end of each quarter to get it paid into your employees’ superfunds. That means you can hold that money in your account for up to 90 days before it needs to go anywhere.
From 1 July 2026, that changes.
Super will need to be paid at the same time as wages – whether that’s weekly, fortnightly, or monthly – with contributions reaching your employees' super funds within seven business days of each payday.
To put it simply:
The total you owe doesn't change - but the big change is (a) the timing of payments you (as employer) must make, and (b) the increased attention (and possibly penalties) your business will receive should you fail to adhere to the new rules.
Most trade businesses run tight on cash flow at the best of times. You buy materials upfront, do the work, and then wait 30 to 60 days to get paid. That gap is already a pressure point.
Under the old rules, a lot of small business owners — even if they didn't think of it this way — were using the quarterly super window as an informal cash flow buffer. That money was sitting in the account, available if needed, and then squared up every three months.
That buffer disappears on 1 July.
If you have a team of two or three employees, you could be looking at several thousand dollars leaving your account each monthly pay run that previously was paid 90 days later. For businesses that are already managing the materials-before-payment gap, this is a real shift that needs planning — the changes come into force in 60 days or so.
Under the old rules, the ATO would pick up on missed super at the end of each quarter. Under the new rules, they’re watching every payday.
If you miss a super payment on a single pay run, you could be up for a penalty on top of the super itself. Penalties can reach 25% of the unpaid amount, and up to 50% for repeated failures.
The ATO has said they'll go easy on businesses in the first 12 months (July 2026 to June 2027), as long as you're genuinely trying to do the right thing. But there's no free pass — and that grace period won't last forever.
The simplest way to avoid any of this: set up your payroll so super goes out automatically with every pay run and prepare to have the funds available to make payment when due.
Take your quarterly super bill and divide it by the number of pay runs in that quarter. That’s roughly what needs to leave your account each payday from July. Make sure that money isn’t being earmarked for something else.
Call your bookkeeper, accountant or payroll provider and ask if the software is ready for Payday Super.
Super must reach your employees' fund within seven business days of payday — and the clock starts on payday. Allow a couple of days for the money to process and arrive in your employees’ accounts.
If you have a bookkeeper or accountant managing your payroll, loop them in now so the transition happens smoothly.
One of the practical challenges with Payday Super isn't the amount — it's the timing. The money needs to leave your account every payday, regardless of where your debtors are sitting.
If you're in a period where payments are coming in slower than usual — a big job that's 45 days out from completion, a client who's dragging their feet on an invoice — having access to funding, such as a Laddr Line of Credit, means you can cover payroll and super obligations without burning through reserves or delaying payments to your team.
With Laddr, you draw what you need, when you need it, and repay as your invoices come in. For Reece trade customers navigating the shift to more frequent super payments, having that buffer available can make the difference between a smooth transition and a stressful one.
Check out how Laddr works for Reece trade customers, here.
That’s it. Not complicated, but it does need your attention before July.
This post is general in nature and does not constitute financial or legal advice. For guidance specific to your business, speak with your accountant or a registered tax professional. For the latest ATO guidance on Payday Super, visit ato.gov.au/paydaysuper.
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