What Payday Super Could Mean For You
Cogger Gurry • May 13, 2025
The way superannuation is paid may be about to undergo a significant transformation. The Labor government’s proposed “payday super” reforms would require employers to pay superannuation contributions within seven calendar days of every payday.
Payday super is intended to apply from 1 July 2026, it’s important to understand what this could mean for you.
For employers, the shift to payday super involves changes to administrative processes. Key considerations include:
- From 1 July 2026, super contributions must reach your employees’ funds within seven calendar days of their payday, whether you pay weekly, fortnightly or monthly.
- The ATO’s Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Employers who currently use it will need to transition to suitable payroll software.
- The superannuation guarantee charge (SGC) will be redesigned to include components such as notional earnings (interest on unpaid super), administrative uplifts, and choice loadings for non-compliance with fund choice rules. Importantly, both on-time and late super contributions would be tax-deductible, offering some financial relief to employers.
You can read more about this Here
Please note that Xero has recently made changes to their subscription plans with the major change of added Payroll and Superannuation functionality to their Ignite and Grow plans. As we are at the start of a new financial year this may be an appropriate time for you to review your business’s subscription level to ensure you are on the most suited plan for your business needs. If you have any questions, feel free to contact us to discuss your software needs. 03)5571 0111
If you have paid wages to employees in the 2025 financial year you will need to make a finalisation declaration by 14 July 2025 to ensure your employees can access their finalised information to complete their tax return. When you have reported and finalised your employees' information through STP, you are exempt from: providing payment summaries to your employees lodging a payment summary annual report. For payments to your employees that were not reported through STP, you still need to: give a payment summary to your employees provide the ATO with a payment summary annual report for these payment summaries. For small employers (19 or fewer employees) who only have closely held payees, the due date for end-of-year STP finalisation is the payee's tax return due date. If you would like to know more, you can visit Here
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