The Payday Super reform is coming. Here is what changes on 1 July 2026, and what it means for you.
| What's coming | Impact | How Chandler Macleod can help |
|---|---|---|
| From 1 July 2026, super must be paid every pay cycle, not quarterly. | Employers need to review payroll processes, cashflow timing and compliance readiness. Contractors will see super paid more frequently. | We are already set up for the change and can support employers to understand the impact across their workforce arrangements. |
| Payments must reach the employee’s fund within 7 business days of payday. | Late or missed payments create immediate compliance risk and potential penalties from the first pay cycle. | Our model already manages contractor super obligations in line with the new framework, reducing risk and administration for clients. |
| The SBSCH closes on 1 July 2026. | Businesses using the ATO clearing house need an alternative payment process in place before the deadline. | We can help clients navigate the change and give contractors confidence that their super is being managed correctly and on time. |
From 1 July 2026, the way superannuation is paid in Australia changes permanently. The quarterly super window closes. Employers will be required to pay super at the same time as wages, every pay cycle, with contributions reaching the employee's fund within 7 business days of each payday.
Whether you are an employer managing a workforce or a contractor wondering what this means for your super balance, this guide covers what you need to know and what, if anything, you need to do.
What is Payday Super?
Payday Super is a reform to Australia's superannuation system introduced by the Australian Government, taking effect from 1 July 2026.
Under the current rules, employers are required to pay super quarterly. Under Payday Super, that changes. Super must now be paid:
- At the same time as each wage payment
- Into the employee's nominated fund
- Within 7 business days of the payday
The broader definition of qualifying earnings also changes. From 1 July, super is calculated on a wider measure that includes salary sacrifice amounts, meaning the base on which contributions are calculated is broader than it is today.
Source: Australian Taxation Office. For full details on Payday Super, visit ato.gov.au/payday-super
For employers
If you manage a workforce, Payday Super has direct implications for your payroll processes, your systems, and your cashflow planning. Here is what you need to action before 1 July.
What changes for you
- Super moves from quarterly to per-pay run. Every time you pay wages, a super contribution must follow.
- The 7-day clearance rule applies. Contributions must reach the employee's fund within 7 business days of payday. Processing delays are no longer absorbed by a quarterly window.
- Qualifying earnings broaden. Review your payroll calculations to confirm they reflect the updated earnings base.
- Penalties apply from day one. There is no grace period. Late or missed payments attract ATO penalties from the first pay cycle after 1 July.
The SBSCH is closing
The ATO Small Business Superannuation Clearing House, used by many small businesses to manage super payments, closes on 1 July 2026. If your business currently uses the SBSCH, you need to have an alternative clearing house arrangement in place before that date. Speak to your payroll provider or accountant about your options.
Your action checklist before 1 July
| Date | Action |
|---|---|
| Now | Review your payroll system with your provider. Confirm it will support per-pay run super payments from 1 July. |
| Before June 30 | Confirm your clearing house arrangements. The ATO Small Business Superannuation Clearing House (SBSCH) closes on 1 July. If you use it, you need an alternative in place. |
| 1 July 2026 | Payday Super takes effect. Super must be paid every pay run and reach the employee's fund within 7 business days. |
| First pay cycle after 1 July | Your first Payday Super payment is due. Penalties apply for late or missed payments from this date. |
If you manage labour hire/payrolled staff through Chandler Macleod, your super obligations are already being handled under the new framework. You do not need to take action on that front.
Questions about your specific workforce arrangement? Contact your Chandler Macleod account manager or visit chandlermacleod.com/employers
For contractors
If you are contracting through Chandler Macleod, here is what Payday Super means for you, and what, if anything, you need to do.
What changes
Under Payday Super, your super contributions will be paid at the same frequency as your wages, weekly or fortnightly depending on your pay cycle, rather than quarterly.
In practical terms, your super balance will grow more consistently throughout the year, with smaller, more frequent contributions rather than four larger lump sums.
What does not change
- Your superannuation rate remains the same
- Your fund choice remains the same
- Your entitlements remain the same
What Chandler Macleod does for you
We have been paying super more frequently than the legal minimum. Indeed, we currently pay super monthly, ahead of the quarterly requirement. From 1 July, we move to paying at the same frequency as your wages in line with the Payday Super reform.
Note: This applies to PAYG employees engaged through a PAYG arrangement with Chandler Macleod.
If you are engaged through your own company as an incorporated contractor or ABN holder, your super obligations are managed separately through your own structure. Your consultant will confirm which arrangement applies to you at the start of your engagement.
Do you need to do anything?
If you are currently working through Chandler Macleod under a PAYG arrangement, you do not need to take any action. We are managing the transition on your behalf.
New to working through Chandler Macleod?
Visit
chandlermacleod.com/contractors to find out how we support you, from onboarding through to your next role.
The short version
Payday Super changes the timing of super payments. Quarterly is out. Per-pay run is in. Contributions must reach funds within 7 business days of payday.
For employers: review your payroll systems and clearing house arrangements before 1 July. Penalties apply from day one.
For contractors with Chandler Macleod: nothing changes on your end. We are already on top of it.
Source: Australian Taxation Office (ato.gov.au/payday-super) | Fair Work Commission (fwc.gov.au)
This article is intended as a general guide. For advice specific to your situation, consult your accountant, payroll provider, or the ATO directly.
Liked this blog? Share it with your network:
Leadership capacity is like a bank account: every demand is a withdrawal. Discover the practical tips to build your resilience and become a sustainable leader.
Learn how a well-designed assessment centre for graduate and high-volume recruitment programs can significantly impact the quality of hiring outcomes for employers.
Find out how office ergonomics can improve employee effectiveness and boost business productivity. Plus, take your own ergonomic self-assessment!
Discover how RGF Staffing ANZ, including Chandler Macleod, achieved Platinum status on the EcoVadis Sustainability Scorecard, placing us in the top 1% of companies globally. Learn what this milestone means for our sustainability journey and commitment to responsible business practices.
Learn the 5 key steps that leaders need to reengage employees after a restructure, to positively contribute to individual and team wellbeing, and workplace culture.
Chandler Macleod is the winner of the 2025 TIARA Award for RPO/MSP/Talent Solutions Company of the Year. Learn why we won and what this means for our clients.
Discover the common hazards associated with work travel and learn how you can support safer work travel for employees in your organisation.
Learn about the importance of identifying and risk assessing grey collar roles, and the key steps needed to prevent risks being overlooked in the workplace.
Learn how to respectfully resign from your job, what to expect during the resignation process, and how to find your next role.
Learn about the 6 key trends shaping the evolving Australian workforce in 2025 and how employers can respond to the challenges in recruitment and retention.