It is hard to believe we are already in mid-February 2026. With the year moving so fast, July might feel like it is ages away, but in the world of business compliance, it is right around the corner. If you employ staff, 1 July 2026 marks the start of the most significant change to superannuation processing in years: Payday Super.
For decades, many businesses have operated on a quarterly superannuation cycle. This allowed employers to accrue liability over three months before making a payment. While this assisted with cash flow for some, it often left employees in the dark about whether their super was actually being deposited. The Australian Government has decided to close that gap.
From 1 July 2026, you must pay your employees’ super guarantee on payday. Whether you pay weekly, fortnightly, or monthly, the super transfer must occur at the same time as the salary and wages transfer.
This is not just a change in timing; there are new definitions to learn as well.
The Shift to Qualifying Earnings (QE)
Previously, we calculated super based on Ordinary Time Earnings (OTE). This often caused confusion regarding overtime and specific allowances. The new system uses a term called Qualifying Earnings (QE).
QE is calculated at the standard 12% rate. This new definition is designed to bring together OTE and other payments to simplify the process, though it will require you to review your pay items in your accounting software to ensure everything is mapped correctly before the financial year rolls over.
The Seven Day Rule
It is not enough to just click ‘pay’ on payday. The legislation requires that the funds be received by the employee’s super fund within 7 business days. This means you need to ensure your SuperStream clearing house is efficient. If your current clearing house takes 10 days to process payments, you will be non-compliant under the new rules.
Managing Cash Flow
The biggest impact for small to medium businesses will be cash flow. If you have been using the quarterly cycle to manage working capital, you need to adjust your budgets now. You will be remitting superannuation up to four times more frequently than before.
At Nova Business Services, we recommend looking at your cash flow forecast for the remainder of 2026 immediately. Do not wait until June to realise you do not have the liquidity to meet weekly or fortnightly super obligations.
If you are feeling overwhelmed by the shift to Payday Super, reach out to us. We can review your payroll setup and help ensure you are compliant long before the July deadline hits.
