Payday super

What is payday super? 

The Federal Government is changing how employers pay mandatory super contributions for their employees from 1 July 2026. 

If you’re an employer, you will be required to pay Superannuation Guarantee (SG) contributions on an employee's ‘payday’, with contributions generally needing to be received by the employees’ super fund within seven business days. 

Covered in this article:

• Why is the Government making changes to SG (payday super)?
  
• How will payday super work?
• Key changes to understand
• Closure of the ATO’s Small Business Superannuation Clearing House (SBSCH)
• How to prepare for payday super
• Additional resources

Why is the Government proposing changes to SG (payday super)?

The Federal Government’s payday super legislation aims to create a fairer superannuation system for employees and address the issue of unpaid super.  

Unpaid super amounted to $5.2 billion in the 2021/22 financial year¹, according to ATO estimates. Payday super will make it easier for employees to track the super contributions made to their super fund.
 

How will payday super benefit employers?
 

While the introduction of payday super will likely require changes to payroll processes and systems, it could make it simpler to meet your super obligations: 

• Improving payroll processes: Integrating super payments with payroll can create a more efficient and automated system. 
• Reduce payroll liabilities: Regular super payments lower the risk of accumulating large quarterly payments, streamlining cash flow management. 
• Assist with employee questions: By paying super contributions at the same time as wages, the increased transparency may result in fewer employee enquiries to payroll and HR teams checking if their super has been paid.
   

Benefits to employees
 

The payday super changes will have widespread impact, with Treasury estimating that under the new rules, “a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement with the move to payday super.”²
 

Other benefits include:
 

• Eliminates delayed super: The reforms aim to ensure employees receive their SG contributions at the same time (or within a few days) as their pay, eliminating the issue of delayed or unpaid SG contributions.
• Real-time growth: Employees will see their super grow at the same time they are paid, potentially improving investment outcomes. 
• Enhanced compounding returns: Frequent contributions can help employees benefit from compounding investment returns, leading to a more secure retirement. 

How will payday super work?

From 1 July 2026, employers must pay employees' super at the same time as their salary or wages. That means super payment dates for your business will be the same as your payday, if they're not already.

There are several exceptions to this new timeframe, and you can learn more about those exceptions by downloading our payday super FAQs.

Employers must ensure their employees’ SG contributions are successfully received by their super fund within seven business days from paying the employee’s qualifying earnings.

Key changes to understand
 

Closure of the ATO’s Small Business Superannuation Clearing House (SBSCH)

The SBSCH will close from 1 July 2026. New users have been unable to register for the SBSCH since 1 October 2025 although current users will continue to have access to make payments until 30 June 2026. The ATO has published an alert on its website for employers about the pending closure of the service.

If you use this service, you may wish to start looking for an alternative clearing house that is already payday super compliant, such as Mercer Employer Portal3 or Mercer QuickSuper4 to make your SG contributions. These clearing house services are free for Mercer Super employers. Find out more here.
 

How to prepare for payday super
 

Many employers are already preparing for payday super changes by reviewing and testing payroll system configuration for super and single touch payroll reporting practices to ensure readiness:

• Data: Ensure your data is accurate. Make sure your data is clean and complete and look for any missing SuperStream data points that could delay contribution allocations.
• Processes and technology: Assess your current payroll systems and processes to identify if any updates are needed to meet the new requirements, including clearing houses. Check how your current processes will cope with more frequent contributions.
• Cashflow: Plan for the new payment frequency and consider the impacts on your business cashflow of super being paid at the same time as your regular pay cycle.
• Governance: Review how you record, report and prove compliance for SG contributions.
• New employee onboarding: Update any onboarding documents that mention super payment timeframes and update your onboarding process to capture super choice early and check employee data.
• Employee awareness and training: Think about how to raise awareness of payday super within your business. Create a plan to inform employees about the new payment frequency and update any internal content you may have that talks about super payment arrangements.

Learn more
 

There are a range of resources from Mercer Super and the ATO with more information about payday super.

• Watch our payday super webinar.
• Read our FAQs.
• Chat to our team of specialists by calling 1800 682 525 (option 4).
• Visit the ATO’s payday super website and their revised data and payment methods website, or watch their short video that helps explain what payday super means for employers.

Mercer can also assist employers with a comprehensive superannuation guarantee compliance review, ensuring businesses understand what is required to meet their obligations and protect the financial wellbeing of their employees. Call our team of specialists on 1800 682 525 (option 4) for further information.