Superannuation is getting a major upgrade.
The Australian Government’s Payday Super reform is changing how and when employers pay their employees’ super. If you currently make quarterly payments, this change affects you — and it’s happening soon.
At Flexible Financial Solutions, we’ve been following the reforms closely to help Gold Coast businesses prepare early. Here’s a clear breakdown of what the Payday Super changes mean, why they matter, and how you can get your payroll systems ready before 2026.
What Is Payday Super?
The Payday Super reform means employers will have to pay super at the same time as wages and salaries, instead of quarterly.
According to the Australian Taxation Office (ATO), this change is designed to make sure employees receive their super sooner, protect their retirement savings, and reduce the risk of unpaid super.
This update was first announced in the 2023–24 Federal Budget, and the Treasury Laws Amendment (Payday Superannuation) Bill 2025 was introduced to Parliament in October 2025. The proposed start date is 1 July 2026.
1. Cash Flow Will Need Rethinking
One of the most significant consequences of the upcoming Treasury Laws Amendment (Payday Superannuation) Bill 2025 is that for many Gold Coast businesses, superannuation payments will shift from being a quarterly event to something that happens in each pay cycle. This domino effect touches cash flow, payroll timing, bank authorisations and internal coordination.
What exactly changes?
- Under the current system, many employers pay super guarantee (SG) contributions at the end of each quarter. From 1 July 2026, the reforms propose that employers make super payments at the same time as wages, and those contributions must reach the employees’ super fund within 7 business days of payday.
- This shorter timeline means companies who pay weekly or fortnightly must align their cash-outflows accordingly. The shift is not just about timing, but frequency: instead of once every three months the outflow becomes each payroll round.
- For businesses with seasonal or variable cash flows (which is common on the Gold Coast — e.g., hospitality, tourism, building/trades), this adds pressure to ensure funds are available more frequently and reliably.
Practical implications for your business
- You’ll require more liquidity: having enough cash to cover wages and super in the same pay period becomes essential. The lag your business may have used (say paying wages now and super later) no longer exists in the same way.
- Your payroll calendar must align with your bank’s cut-off times and fund transfer lead times. If a pay run falls near a weekend or public holiday, the 7 business-day window may shrink further — which means your super payment pipeline must be iron-clad.
- Internal coordination becomes more important: your payroll team (or your bookkeeper) must coordinate with finance, banking and possibly your BAS agent to ensure super contributions are flagged, payments authorised and reconciled quickly.
- If you work with a Gold Coast bookkeeper, now is the perfect time to review how your super payments fit into your payroll schedule: weekly, fortnightly or monthly. Ask: what’s our current delay between wage payment and super payment? What’s our buffer? What happens if we miss the 7 business-day window?
Why this matters now
Moving to per-pay-run super payments means your cash-flow rhythm changes. You’ll want a model of your 13-week rolling forecast that includes expected super payments immediately after each pay cycle. If you don’t plan now, you risk being caught short, which could lead to late super payments, fund allocation issues and more compliance risk. The ATO explicitly acknowledges the cash-flow challenge for small businesses in its consultation materials.
In summary: rethink your cash-flow management, align your pay cycle and super payments, and ensure your payroll-super bank processes are robust ahead of the reform.
2. Payroll Systems Must Be Updated
With the new reforms comes a new operational requirement: your payroll and accounting systems must support frequent, timely super payments, and your processes must be compliant out of the box.
Specific changes to payroll systems
- The reform introduces Qualifying Earnings (QE) as the base for super contributions. While QE broadly aligns with Ordinary Time Earnings (OTE), there are important differences around allowances, bonuses or overtime.
- Contributions must be received in the employee’s fund within 7 business days of payday, under the proposed legislation.
- The ATO’s draft compliance guideline — PCG 2025/D5 — outlines how employers will be assessed in the first year of the new regime (1 July 2026 – 30 June 2027). It emphasises the need for strong payroll-super integrations and timely payment flows.
What you need to check
- Payroll software compatibility: Does your system (e.g., Xero, MYOB, QuickBooks) support automatic contribution batching, SuperStream compliance, and payment within the new timeframe? If you use Xero, now is the time to talk to a Xero expert in Gold Coast about your configuration.
- Data integrity: Are your payroll codes correctly linked to super categories? Are allowances, overtime and bonuses coded such that they feed into QE correctly? Mis-coded payments could risk under payment.
- Payment authorisation workflows: Because payments must arrive within 7 business days, your internal approvals should be streamlined; banking cut-off times, fund delays and manual processing have less margin for error.
- Reconciliation and audit trail: As more frequent payments occur, monthly or even fortnightly reconciliation becomes critical to detect and correct any shortfalls or errors.
- Testing ahead of time: Run dry-runs before 1 July 2026; simulate a pay run and super payment and verify funds reach a test super fund within the required timeframe.
Why this matters for you
Without a system ready to support frequent payments, you risk being in the high-risk zone for ATO compliance. The shift from quarterly to each pay cycle dramatically changes how your payroll works, which means paying attention to software, banking and process workflows now will save headaches later.
3. Compliance Will Be Under the Spotlight
The reform isn’t just operational, it brings a heightened compliance focus. The ATO is signalling it will use the initial rollout to categorise employer behaviour and direct resources accordingly.
What the ATO says
- The draft PCG 2025/D5 outlines a risk-based compliance framework for the first year. Employers will be grouped into low-risk, medium-risk and high-risk categories based on their payment history and efforts to comply.
- Low-risk employers are those who make genuine efforts, pay on time and have no shortfall. Medium-risk could be minor errors but timely correction. High-risk is irregular payments, late payments, or systemic shortfalls.
- If you’re in the high-risk group, the ATO is more likely to initiate a review or audit. Employers who still pay quarterly in the new regime may slip into medium or high risk.
Implications for your business
- You’ll want to demonstrate good faith in transitioning: documenting your review, your systems update, your payment tests and your reconciliation processes will help evidence that you’re preparing which may keep you in the low-risk zone.
- Working with a registered BAS agent in Gold Coast or experienced bookkeeper helps. They can provide the audit trail, ensure STP and super data match and help you document your processes and controls.
- Late payments or shortfalls will attract not just the Super Guarantee Charge (SGC) but potentially higher penalties, interest and increased scrutiny. The bill tightens these consequences.
- Compliance isn’t just about internal processes, it’s about data matching across STP, fund allocation and employer returns. The ATO will match payroll data against super fund data more actively.
Why this matters for you
Being prepared isn’t optional. If you’re caught off-guard and payments don’t reach the fund within the required timeframe, you risk falling into higher compliance risk, being selected for an ATO review, and paying penalties. For Gold Coast businesses who already juggle many roles, this adds another compliance layer so getting professional help now is a smart investment.
Key Details You Should Know
Qualifying Earnings (QE)
One of the more technical but important changes in the Payday Super reform is the introduction of “Qualifying Earnings” (QE). This new term replaces “Ordinary Time Earnings” (OTE) as the base used to calculate superannuation contributions.
So, what does that really mean for employers?
Under the old rules, super was based mainly on what employees earned during their ordinary working hours. The new Qualifying Earnings model captures a broader range of income types. This means that super is calculated on more kinds of payments—such as certain allowances, bonuses, and loadings—giving employees fairer and more consistent contributions across their earnings.
For employers, this change helps ensure compliance and consistency, especially if you manage different pay structures for full-time, part-time, or casual staff. It’s also designed to make sure employees aren’t missing out on super when they earn income outside standard hours or through variable pay components.
To get the details right, it’s a good idea to review your payroll categories and confirm that your system correctly classifies earnings according to the Qualifying Earnings definition. The ATO’s current guidance on how super is calculated can be found on their Superannuation Guarantee page.
If you’re unsure whether your current setup is aligned, talk to your Gold Coast bookkeeper or Xero expert. They can help review your payroll structure, re-map pay items, and make sure you’re ready for the new reporting requirements before 2026.
Seven Business Days to Pay
Under the new rules, employers will need to make sure super contributions reach employees’ super funds within seven business days after each payday.
That’s a big change from the current quarterly system, where businesses have up to 28 days after the end of the quarter to make their payments. On the surface, seven business days may sound manageable, but in practice it requires tight scheduling, especially for businesses that pay weekly or fortnightly.
The term “business days” gives employers a little flexibility compared to “calendar days”, but timing is still critical. Public holidays, weekends, and bank processing times can affect whether your payment reaches the fund on time. Employers will need to plan their pay runs carefully, make sure approvals happen quickly, and confirm that their payroll software and super clearing systems can process contributions without delay.
According to the Treasury Laws Amendment (Payday Superannuation) Bill 2025 Explanatory Memorandum, super funds will also have to allocate contributions faster—within three business days of receiving them. This ensures employees can see their super balances grow in real time, improving transparency and trust in the system.
To stay compliant, now is the time to check your cash flow and payroll automation. With tools like Xero Auto-Super, employers can schedule payments alongside wages, removing the manual lag and reducing the risk of missing deadlines.
If you’re a business owner on the Gold Coast, your BAS agent or bookkeeper can walk you through setting up these systems and running test pay runs to make sure your payments clear within the required timeframe.
The Small Business Superannuation Clearing House (SBSCH) Is Closing
Another key change connected to the reform is the closure of the Small Business Superannuation Clearing House (SBSCH), which many small employers currently use to pay super.
The ATO has confirmed that:
- The SBSCH will stop accepting new users from 1 October 2025.
- It will close entirely by 30 June 2026.
You can read the official timeline and guidance directly from the ATO’s SBSCH Transition Page.
If your business currently uses the SBSCH, you’ll need to move to a payroll-based super payment system before the closure date. The easiest way to prepare is to transition to software like Xero, MYOB, or QuickBooks, which all offer built-in super payment solutions that meet SuperStream and Payday Super requirements.
Switching early will help you avoid last-minute stress and ensure you’re fully compliant when the new rules take effect. Plus, these systems can automate super contributions, track payment confirmations, and update your records instantly—all features that will become essential under the new regime.
If you’re not sure where to start, a Gold Coast bookkeeper can help you set up payroll-based super payments, integrate your accounting software, and make sure your super obligations are streamlined well before 2026.
How to Get Ready for Payday Super
Preparation is key. Here’s a simple roadmap to help you get ahead of the change.
1. Review Your Payroll Setup
Check your pay frequencies, systems, and super processes. Make sure your payroll software supports automated super payments and that all employee details are correct.
2. Talk to Your Bookkeeper or BAS Agent
Your bookkeeper or BAS agent can review your reporting and ensure your Single Touch Payroll (STP) data matches your super records.
If you’re not already working with one, connecting with a Gold Coast bookkeeper can save you hours and reduce compliance stress.
3. Update Cash Flow Forecasts
Frequent super payments mean funds will leave your account more often. Work with your financial advisor or bookkeeper to adjust budgets and forecasts so your payroll runs smoothly.
4. Stay Informed
Bookmark key ATO resources:
- ATO Payday Superannuation Overview
- Draft PCG 2025/D5
- Superannuation Guarantee Requirements
5. Migrate Away from SBSCH Early
Don’t wait until June 2026. Set up payroll-integrated super payments in advance, and test them well before the new rules start.
How Flexible Financial Solutions Can Help
At Flexible Financial Solutions, we help small businesses across the Gold Coast stay confident and compliant through every ATO update.
We specialise in:
- Bookkeeping and payroll setup
- BAS preparation and lodgement
- Xero integration for automatic super and STP reporting
- Superannuation reconciliation and compliance checks
Whether you’re a sole trader, café owner, or growing team, our job is to make compliance feel simple, so you can focus on your business, not deadlines.
Getting Ready for Payday Super Starts Now
The Payday Super reform is one of the biggest changes to payroll and compliance in recent years. By aligning super payments with wages, it creates a system that’s fairer, faster, and more transparent for employees. But for employers, it also means adapting early and staying organised.
Now is the time to review your payroll setup, forecast your cash flow, and make sure your systems can handle more frequent super payments. Whether you manage payroll yourself or rely on software like Xero, preparation will make all the difference when the new rules take effect in July 2026.
Working with a trusted Gold Coast bookkeeper, BAS agent, or Xero expert can make this transition seamless. They can help automate your payroll, fine-tune your reporting, and ensure you stay compliant with ATO requirements — without adding stress to your workload.
Getting ahead of the reform isn’t just about ticking a compliance box; it’s about future-proofing your business. With the right systems and support, you’ll have clarity, confidence, and control over every super payment well before the ATO’s 2026 deadline.
At Flexible Financial Solutions, we help Gold Coast businesses stay compliant, efficient, and ready for what’s next. Let’s make sure your super setup is one less thing to worry about — so you can focus on growing your business with confidence.
Need help reviewing your payroll or super setup?
Reach out to our friendly team at Flexible Financial Solutions today. We’ll walk you through what the reforms mean for your business, help streamline your Xero or payroll system, and make sure you’re ready for Payday Super well before 2026.
