Superannuation Rules in Australia Are Changing. Is Your Cashflow Ready?
Payday Super: The End of Quarterly Cash Buffers
From 1 July 2026, the Payday Super legislation comes into effect. The days of using superannuation accruals as a temporary cash buffer are over. If you run a business in Australia, you need to prepare your payroll – and your bank balance – now.
Cashflow reality check
What is Payday Super?
It is exactly what it sounds like. Under new Australian Government legislation, employers must pay their employees' Superannuation Guarantee (SG) contributions on the same day as their salary and wages.If you pay your staff weekly, you pay their super weekly. If you pay fortnightly, the super goes out fortnightly.The critical detail: The funds must reach the employee's super fund account within 7 business days of payday. This is now the law.For decades, many businesses have treated accrued super as operating capital between quarterly deadlines. That 90-day window allowed for improved liquidity and cash management.Payday Super removes this float.From mid-2026, that capital will leave your account immediately. This will not change your total expense liability, but it will drastically alter your working capital cycle.No more quarterly spikes: You will no longer face a massive bill every three months (e.g. 28 October or 28 January).Smoother but faster outflows: Expenses will hit your account in real-time.Strict deadlines: Missing a payment by even a day because of cashflow gaps will trigger penalties.
The ATO is cracking down
The New Compliance Landscape
The Australian Taxation Office (ATO) is tightening the screws on unpaid super. The new system is designed to catch non-compliance in real-time.New Calculation Method: Super will be calculated on 'Qualifying Earnings' (QE), a new term that includes Ordinary Time Earnings (OTE) and salary sacrifice amounts.The Stick: A revised Super Guarantee Charge (SGC) will apply to missed payments. While this new SGC will be tax-deductible (unlike the old one), it includes interest that compounds daily.SBSCH Closure: The Small Business Superannuation Clearing House will close to new users on 1 October 2025 and shut down completely by 1 July 2026. You must find a SuperStream-compliant alternative before then.
Set up for success now
Action Plan: Get Ready Before 1 July 2026
Do not wait for the deadline. The businesses that struggle will be the ones that try to switch their cashflow model overnight.Review your payroll software: Ensure your current platform can handle automated Payday Super events. Manual processing will be impossible.Forecast your cashflow: Run reports to see what your bank balance looks like if super leaves your account every pay run.Ditch the SBSCH: If you use the government clearing house, move to a commercial SuperStream solution immediately.Start early: Consider switching to payday super payments before the mandate. It proves your system works and adjusts your budgeting mindset early.
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Payday Super is coming. Secure your cashflow and stay compliant.
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