From 1 July 2026
Quarterly super payments are gone.
Super is paid every payday.
This change affects more than just payment timing. Your payroll systems, cash flow planning and compliance obligations all shift. If you're not prepared, penalties will follow quickly.
Change 1
Super paid every payday
Change 2
SBSCH closes 30 June 2026
Change 3
Payroll system must be ready
Change 4
Cash flow timing shifts
What's changing on 1 July 2026
Super is paid every payday, not quarterly
Instead of one quarterly payment, you'll make super payments with each payday. Contributions must reach your employees' super funds within 7 business days of payday.
This sounds simple. It's not. The timing is tighter, the frequency is higher, and the compliance expectations are stricter.
The SBSCH closes on 30 June 2026
The ATO's Small Business Superannuation Clearing House (SBSCH) is shutting down permanently on 30 June 2026. If you currently use it to pay super, you have less than a month to transition to a SuperStream-compliant alternative.
If you don't act by 30 June
- You won't be able to access your SBSCH records after 11:59pm AEST on 30 June
- You'll have no way to pay super from 1 July
- Your first payday super payment will be late—triggering penalties immediately
This is non-negotiable. You need a new provider in place and tested before 1 July.
Your payroll system must calculate super on every pay run
Your current payroll software may not be set up for payday super. Some systems were designed for quarterly payments and need updating or replacing.
You need a system that:
- Calculates super obligations on every payday
- Transmits payments in SuperStream format (the ATO's required data format)
- Tracks compliance in real time
- Reports accurately for Single Touch Payroll (STP)
Not all payroll software is ready. Check with your provider now.
Cash flow changes
Even though total super payable may be similar across the quarter, the outflow happens every pay cycle now instead of once. This affects:
For some businesses, this is a minor adjustment. For others—particularly seasonal businesses, hospitality or construction—it requires real planning.
The compliance risks are real
The ATO is serious about enforcement. Here's what's at stake.
Per-payday penalties
If a super contribution isn't received by the employee's fund within 7 business days of payday, the Superannuation Guarantee Charge (SGC) applies.
The SGC is not just the unpaid amount. It includes:
- Interest (at the ATO's prescribed rate, currently around 5% per annum)
- An administrative uplift of 10%
- Possible penalties on top if there's negligence or intent
Real numbers: If you miss a $5,000 super payment by one day, the SGC could be around $550 before penalties.
Escalating penalties for repeat offenders
One missed payment might be treated as an honest mistake. Multiple breaches trigger escalating penalties:
These stack quickly. A pattern of late payments becomes expensive.
Director Penalty Notices (DPN)
If your company consistently fails to pay super, the ATO can issue a Director Penalty Notice. This makes directors personally liable for unpaid super amounts.
You can't hide behind the company structure. Directors are on the hook.
Real-time ATO monitoring from day one
The ATO will use Single Touch Payroll data to monitor compliance starting 1 July 2026. They've published compliance guidance (PCG 2026/1) outlining a risk-based approach for the first year.
They're watching. They have the data in real time. Non-compliance will be identified quickly.
Four critical areas to review before 1 July
1. Cash flow impact assessment
Model the impact on your cash flow. This isn't complex, but it matters.
Questions to ask
- How much super am I paying each week/fortnight?
- When does it need to be out of my bank account? (7 business days after payday)
- Do I have sufficient working capital to cover the timing gap?
- Does seasonal variation in payroll create timing issues?
What to do
Run a cash flow forecast for July through September showing weekly super outflows. Identify any gaps or timing issues.
2. Payroll system readiness
Check whether your current payroll system can:
What to do: Contact your payroll provider now and ask: "Are you ready for Payday Super on 1 July 2026?" Don't assume. Get confirmation in writing.
If your provider isn't ready or is charging a significant upgrade fee, research alternatives now. You have time to test and transition before 1 July.
3. Clearing house transition
If you use the SBSCH, you need a new provider by 30 June. This isn't optional.
What to do
- Download all your SBSCH records now (access closes 30 June)
- Identify a SuperStream-compliant alternative (your accountant or payroll provider can recommend options)
- Set up the new provider
- Test a payday super payment in June to ensure it works
- Document the transition in your payroll records
Don't wait until late June. Do this now.
4. Employee super fund details verification
You need accurate super fund details for every employee. If you send a contribution to the wrong fund, it still counts as late (if it doesn't reach the correct fund within 7 business days).
What to do
- Pull a list of all current employees
- Verify the super fund name, membership number and fund details for each
- Confirm employee Tax File Numbers (TFNs)—SuperStream requires these for matching
- Update your payroll system with accurate details
- Ask new employees to provide super fund details before their first payday
Getting this wrong creates delays. Delays trigger penalties.
5. Cash flow buffer planning
Consider building a super buffer
A working capital reserve specifically for super payments reduces the stress of timing gaps and handles unexpected payroll changes.
What this looks like: If you pay $10,000 in super per fortnight, a two-week buffer ($10,000) sitting in a separate account removes timing risk entirely.
This isn't required, but it's practical insurance against cash flow stress.
Use this to assess where you are
Your Payday Super readiness checklist
By now (June 2026)
Cash flow impact assessment completed
Payroll system provider contacted and readiness confirmed
SBSCH records downloaded (if applicable)
Alternative super payment provider identified and set up
Employee super fund details verified and updated in payroll system
Payroll team trained on new payment process and 7-day deadline
Internal processes updated to track payday super compliance
Test payday super payment processed and confirmed received
By 30 June 2026
SBSCH transition completed
New super payment provider tested and operational
All employee super fund details confirmed
Cash flow buffer in place (if applicable)
Team ready for 1 July changeover
From 1 July 2026
Super paid with every payday
Contributions verified as received within 7 business days
Compliance monitored and documented
How Modoras can help
Payday Super requires more than switching a payment frequency. It involves practical adjustments to cash flow planning, payroll systems and day-to-day processes.
Payroll system review
Assess whether your current system is Payday Super-ready, or recommend alternatives
Cash flow modelling
Project the impact on your business and identify timing issues
Super payment strategy
Advise on clearing house options, buffers and practical workflows to manage compliance
Ongoing support
Help you stay compliant through the transition and beyond, reducing the risk of penalties
Talk to Modoras
The deadline is fixed.
1 July 2026 will arrive.
If you're not ready, penalties will follow immediately. Download the readiness checklist to assess where you are, or book a 30-minute readiness review with our accounting team to get a tailored action plan.
Brisbane: (07) 3219 2555 · Gold Coast: (07) 5570 6150