Understanding Payday Super: What Not-for-Profits Need to Know Before 1 July 2026

Understanding Payday Super: What Not-for-Profits Need to Know Before 1 July 2026

From 1 July 2026, a significant change will affect how employers, including Not-for-Profit organisations, manage superannuation for their staff. Known as Payday Super, this reform will require super contributions to be paid at the same time as wages and salaries, replacing the current quarterly payment model.

This article outlines the key changes, why they are being introduced, and what your organisation can do now to prepare.

What is Payday Super?

Payday Super is an upcoming legislative change that will require employers to pay their employees’ superannuation at the same time as they pay their salary or wages. Currently, employers are required to pay super quarterly, with payments due 28 days after the end of each quarter. Under the new system, employers must ensure super contributions are received by the employee’s nominated fund within seven business days of each payday.

This reform is being implemented by the Australian Government to improve the visibility and timeliness of super payments, reduce unpaid super, and help employees build their retirement savings more effectively.

When Does it Start?

The Payday Super rules will apply from 1 July 2026.

This means all employers, including Not-for-Profits, need to ensure they are compliant with the new payment and reporting requirements before this date.

Key Changes You Need to Understand

Super Must be Paid With Each Pay Run

The most significant shift is that super contributions will need to be calculated and paid with every pay cycle. This applies whether your organisation pays staff weekly, fortnightly, or monthly.

Super payments must reach the employee’s nominated fund within seven business days of payday.

Updates to SuperStream and Fund Processing

Superannuation funds will also need to meet stricter processing timelines. Funds must allocate or return contributions within three business days. This aims to ensure faster processing and reduce the number of unallocated super contributions.

Changes to Compliance Reporting

The ATO will align Payday Super with existing Single Touch Payroll (STP) reporting, allowing real-time or near real-time tracking of employer contributions. This will provide regulators with greater visibility of super compliance and allow earlier intervention if contributions are missed or delayed.

Why This Change is Being Introduced

According to Treasury estimates, millions of dollars in superannuation go unpaid each year. The quarterly payment system has contributed to delayed or missed payments, with many employees unaware that their super is not being paid until months later.

Introducing Payday Super is intended to:

• Reduce the occurrence of unpaid or late super contributions
• Improve transparency for employees
• Enable earlier regulatory action for non-compliance
• Boost long-term retirement outcomes through more frequent compounding of super

What Not-for-Profits Should Do to Prepare

While the new rules do not take effect until July 2026, early preparation will help reduce compliance risks and support a smoother transition.

Review and Update Payroll Systems

Ensure your payroll software can support super payments at the same time as wages. Most major platforms, including Xero and MYOB, are developing features to support Payday Super. Speak with your provider to confirm timelines for updates.

Assess your Cashflow

Moving from quarterly to per-pay-cycle super payments may create short-term cashflow pressures. Consider reviewing your financial forecasts and budget planning now to allow for more frequent super outflows.

Train your Internal Team

Your finance and HR teams will need to understand the new super payment schedule and any changes to payroll procedures. Providing training and updating internal documentation early can reduce the risk of errors.

Work With your Accountant or Adviser

Seek professional advice to assess your organisation’s readiness for Payday Super. Your accountant can help identify compliance risks and advise on best-practice systems and processes.

How We Can Assist

At The Breakthrough Office, we support Not-for-Profit organisations in navigating regulatory change and improving operational effectiveness. As Payday Super approaches, we can partner with your organisation to:

• Review payroll systems and workflows
• Manage financial planning and cashflow forecasting
• Prepare compliance documentation
• Work with your board and leadership to understand governance obligations

By acting now, your organisation can stay ahead of the changes and maintain confidence in your compliance.

If you’d like tailored support in preparing for Payday Super or reviewing your existing finance systems, get in touch with our team today.