Prepare your small business for payday super
Payday super is now law. From 1 July 2026, employers must pay super at the same time as wages, and contributions need to reach the employee’s fund within seven business days of payday. Get set up early so you are ready.
What is Payday Super?
Payday Super means paying your employees’ super at the same time as wages. From 1 July 2026, employers will need to follow this new government requirement. The Small Business Superannuation Clearing House (SBSCH) will also close. If using, you’ll need to switch to another way of paying super.
Get ready to pay super more frequently
Paying super every pay run might impact your business’s cash flow in the short term - so plan ahead.
Review your payroll processes and systems
Determine if updates are needed to your payroll systems to comply with the new requirements.
Stay on top of deadlines
Avoid potential penalties. Late payments could result in fines, interest, and other charges.
What Payday Super means for your business
You’ll now need to pay super each time you pay your employees, instead of quarterly. This may be a shift in how you manage pay runs, but it can also make things simpler. Paying super regularly can help you stay on top of your obligations and give your team confidence their super is paid on time.
Here’s more info from the ATO on how to prepare for Payday Super
Payroll challenges for your business
Your business is likely to face a few challenges with payday super, so you’ll want to make sure you’re updating processes, keeping an eye on cashflow and staying on top of deadlines to avoid penalties.
- Aligning super payments with payroll might require streamlined processes to ensure accurate, timely payments
- More payments means you’ll need to manage your cash flow more carefully
- Failure to pay super contributions within seven days of payday could land you a superannuation guarantee charge.
How Xero can help with your Payday Super
Change can be tough, but Xero software eases you into the new normal. With its user-friendly design and clever features, Xero’s payroll software will help you stay compliant, reduce admin and keep cashflow in check.
Pay the right amount of super every time
Xero calculates super automatically in each pay run, keeping everything accurate and ATO-compliant
Manage super in one place
Payroll and super sit side by side in Xero, so you can handle both without switching systems
Included in every Xero plan
Auto super comes standard at no extra cost – start paying super directly from Xero with no hidden fees
Before Xero we were doing all our invoices and all our orders in spreadsheets. It takes out all the manual processes and just saves time.
Work smarter with intuitive invoicing software. Send online invoices from the desktop or app as soon as the job is done.
Learn more about online invoicing with Xero
FAQs on payday superannuation
Yes. Payday Super legislation has been passed by the Australian government and will apply from 1 July 2026. All Australian employers must pay super at the same time as wages, and ensure contributions reach employees’ funds within seven business days of payday.
Visit the ATO website to learn moreYes. Payday Super legislation has been passed by the Australian government and will apply from 1 July 2026. All Australian employers must pay super at the same time as wages, and ensure contributions reach employees’ funds within seven business days of payday.
Visit the ATO website to learn morePayday Super aims to address unpaid super contributions and help more Australians retire with the money they’re owed. More frequent payments will make it easier to spot incorrect or missed payments, and will help employers avoid building up financial liabilities they find difficult to pay.
Payday Super aims to address unpaid super contributions and help more Australians retire with the money they’re owed. More frequent payments will make it easier to spot incorrect or missed payments, and will help employers avoid building up financial liabilities they find difficult to pay.
Employees can see their super being paid more regularly, giving them confidence that contributions are reaching their fund on time. Through Single Touch Payroll (STP) software like Xero, they can view year-to-date pay and super information in their ATO Online Services account.
Learn more about STPEmployees can see their super being paid more regularly, giving them confidence that contributions are reaching their fund on time. Through Single Touch Payroll (STP) software like Xero, they can view year-to-date pay and super information in their ATO Online Services account.
Learn more about STPIf super isn’t paid within seven business days of payday, the superannuation guarantee charge (SGC) may apply. In the first year, the ATO has said it will focus on supporting employers to get used to the new process, but paying on time is still important.
Visit the ATO website to learn moreIf super isn’t paid within seven business days of payday, the superannuation guarantee charge (SGC) may apply. In the first year, the ATO has said it will focus on supporting employers to get used to the new process, but paying on time is still important.
Visit the ATO website to learn moreThe SBSCH will close on 1 July 2026 as part of the payday super reforms. If your business still uses the SBSCH, you’ll need to transition to a payroll solution that automates super payments, like Xero. It’s a good idea to plan your move soon to learn a new system and stay compliant when Payday Super starts on 1 July 2026.
The SBSCH will close on 1 July 2026 as part of the payday super reforms. If your business still uses the SBSCH, you’ll need to transition to a payroll solution that automates super payments, like Xero. It’s a good idea to plan your move soon to learn a new system and stay compliant when Payday Super starts on 1 July 2026.
Make the transition as free of stress as possible by choosing the right systems and technology. Look for tools that handle payroll and super in one place, like Xero. Xero software helps small business owners automate super payments, stay compliant, and manage cash flow confidently, all within one platform.
Learn more about Xero payroll softwareMake the transition as free of stress as possible by choosing the right systems and technology. Look for tools that handle payroll and super in one place, like Xero. Xero software helps small business owners automate super payments, stay compliant, and manage cash flow confidently, all within one platform.
Learn more about Xero payroll software
Get ready for the future with Xero
Payday Super is coming, but Xero payroll already has you covered. Auto super is trusted by more than 200,000 Australian businesses and can help you build good payment habits now.
Pay staff in minutes
Run payroll in just a few clicks – Xero auto calculates pay, tax and super for quick and accurate pay runs
Stress-free super
Pay super directly through Xero, keeping you compliant today and ready for payday super
Support when you need it
With step-by-step guides and friendly support, it’s simple to stay confident with every pay run
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Prepare for Payday Super with Xero
Xero has all the features you need to manage your small business.
Easy invoicing
Send online invoices as soon as the job is done. Set automatic reminders to spend less time chasing payments.
Simple bank reconciliation
Keep track of your cash flow with daily bank reconciliation. Save time and stay current on your business.
Instant data capture
Automate tasks like entering bills and receipts. Take a photo of receipts or scan bills into Xero via Hubdoc.
Start using Xero for free
Try Xero free for 30 days, then decide which plan best suits your business.
Set up your payroll and superannuation in Xero
Xero Central shares the nuts and bolts of setting up your pay runs.
Payroll and employees
Find technical info on setting up your payroll, including paying tax and creating reports.
Superannuation info
Read up on making pension contributions, including connecting with online pension schemes like NEST.
Pay your bills like a pro
Xero has a number of features that make bill payments easier and reduce the chance of errors.