From 1 July 2026, the way you pay your employees’ superannuation changes completely. This is not a small administrative tweak. It is a fundamental shift in your payroll obligations, and if you have not started preparing, you are running out of time.
I am writing about this today because it needs to be on your radar, you need to be prepared.
What changes on 1 July
Right now you pay super quarterly. Under Payday Super, super must be paid on every payday, the same day as wages, and the contribution must be received by the employee’s super fund within 7 business days of that payday. Not 7 days after the end of the quarter. 7 business days from payday.
The super guarantee rate also lifts to 12% from 1 July 2026. Check with your accountant or payroll provider if you are uncertain what that means for your specific payroll setup.
The SBSCH closes 30 June. This affects you.
If you currently use the ATO’s Small Business Superannuation Clearing House (SBSCH), plenty of small newsagents do, you must switch before 30 June. The SBSCH cannot handle Payday Super and the ATO has confirmed it will not be updated.
The SBSCH closed to new registrations on 1 October 2025. Existing users can submit through it until 11:59 PM AEST on 30 June 2026. After that, your login is disabled. Any super payment you attempt through the SBSCH after 30 June will not be processed. You will be non-compliant from day one.
Your replacement options: integrated payroll software with a built-in SuperStream-compliant clearing house (Xero, MYOB, QuickBooks all have this), a commercial clearing house, or direct payment via your bank using SuperStream. The easiest path for most small businesses is integrated payroll software that processes super automatically as part of the pay run.
The cash flow reality
The total annual super bill does not change. What changes is the timing. Instead of four payments a year, you may be making 26 or 52 smaller ones.
For most businesses with steady revenue, this is manageable. But if your business has months where cash is tight — post-Christmas, or whatever your slow period is — you need to model this now. A payment that used to go out quarterly needs to be on hand every single payday. Run the numbers for your lowest revenue month. If the cash is not there, you need a plan.
Do not assume you will sort it out in July. By the time July arrives, the obligation is already live.
What the ATO will do if you get it wrong
The ATO has said it will take a softer approach for employers making a genuine effort to comply in the first year, July 2026 to June 2027. From July 2027, the full regime applies. Late payments attract the Super Guarantee Charge: the unpaid super, plus daily compound interest, plus an administrative uplift of up to 60% of the unpaid amount. And unlike the super itself, penalties are not tax deductible.
Three things to do right now
- Check whether your payroll software is Payday Super-ready. Contact your provider if you are not sure. Do not assume.
- If you are on the SBSCH, choose your replacement, set it up, and run a test payment before June. Do not leave this until June.
- Run a cash flow model for your low months. Identify the paydays where you will need the super cash on the day, and make sure you have a plan.
The ATO’s full guidance is at ato.gov.au/businesses-and-organisations/super-for-employers/payday-super. Dynamic Business covered the practical implications in April 2026 as well.
1 July is not far away.
…
Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative independent retailers who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.