From 1 July 2026, employers must pay superannuation on or before payday, with contributions required to reach the employee’s super fund within seven business days of each pay event. That’s a major shift from the current quarterly model and it will affect cash flow, payroll processes and compliance settings.
The SA Business Chamber with the Australian Chamber of Commerce and Industry (ACCI), argued strenuously against the proposal, due to the impost it would have on small and medium businesses, when details were released by the government in 2024. “We are concerned the government has not given enough consideration to the pressures small businesses are facing right now,” ACCI Chief Executive Andrew McKellar said. However, Parliament passed the Payday Super legislation in early November 2025.
What’s changing
Super will be due each payday and must arrive in the fund within 7 business days. (initially proposed to be 7 calendar days). Miss that window and the updated Superannuation Guarantee (SG) charge will apply.
The Super Guarantee Charge is being redesigned, with tougher penalties for late or missed payments. The ATO will match Single Touch Payroll data with fund reporting to spot late or missing payments faster.
The ATO’s Small Business Superannuation Clearing House will be retired from 1 July 2026.
Why this matters for SA businesses
We know that moving from quarterly to payday-aligned contributions will create a significant cash impact for many small businesses.
Mistakes and delays beyond the control of businesses will attract tougher penalties.
The retirement of the ATO clearing house is another matter small business will need to prepare for. Affected employers will need an alternative way to remit contributions.
The government has been warned that roughly a quarter of SMEs could struggle under the new arrangements.
Act Now
While 1 July 2026 seems a long-time away SA businesses must take immediate action to minimise the impact and cost of these changes. Start trialling the changes now to avoid issues later and identify changes that may need to be made to reduce the impact on your business.
The Chamber will be joined by KPMG to deliver an informative and practical webinar in the new year – watch this space for more details.
