Upcoming Change: Payday Super Starts 1 July 2026
With just shy of 3 months to go… clients are still unprepared for one of the biggest payroll changes in recent years—Payday Super. What’s changing? From 1 July 2026, superannuation contributions must be paid at the same time as employee wages, rather than quarterly. Why this matters For employees: Super is paid earlier and more…
With just shy of 3 months to go… clients are still unprepared for one of the biggest payroll changes in recent years—Payday Super.
What’s changing?
From 1 July 2026, superannuation contributions must be paid at the same time as employee wages, rather than quarterly.
Why this matters
For employees:
- Super is paid earlier and more frequently
- More time in the market – potential for higher retirement savings through compounding
For employers (including specialist medical practices):
- This is a significant operational shift, not just a compliance update
- Requires changes to payroll systems, processes, and cash flow management
Key impacts for your practice
You may need to:
- Upgrade or reconfigure payroll and super systems
- Increase frequency of super payments (aligned with each pay cycle)
- Regularly verify employee super fund details
- Adjust cash flow forecasting to account for more frequent payments
New timing rules:
- Super must reach funds within 7 business days of each payday
- For new employees or new funds: within 20 business days
Steps to prepare now
To ensure a smooth transition, practices should start preparing immediately:
- Review payroll systems
Confirm your software and clearing house can handle real-time super payments. - Check employee super details
Incorrect fund information can lead to rejected contributions and delays. - Understand updated earnings definitions
Payday Super expands what counts toward super calculations—accuracy is critical. - Plan cash flow more closely
Super will need to be budgeted in line with each pay cycle (weekly/fortnightly/monthly). - Track contribution limits annually
The Maximum Contribution Base will move from quarterly to annual tracking. - Strengthen compliance processes
The ATO has indicated a pragmatic approach initially—but good governance and documentation will be essential.
What this means for medical/healthcare practices
For private specialist and healthcare practices, where payroll can already be complex (multiple practitioners, varied pay structures), early preparation is critical to avoid disruption and ensure compliance.
Now is the time to review your systems and processes.
Taking action early will help your practice stay compliant and avoid unnecessary stress as the deadline approaches.
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