Payday Super 2026: How Small Businesses Can Get Ready
Payday Super Reforms: What Small Businesses Need to Know (and How to Prepare Now)
Australia’s Payday Super reforms are set to reshape the way employers manage superannuation contributions — and many small businesses may not be ready.
From 1 July 2026, employers will be legally required to pay superannuation contributions at the same time as salary and wages. It’s a landmark shift that aims to ensure workers receive their super entitlements on time, reduce unpaid super balances, and strengthen the overall integrity of Australia’s retirement system.
But while the reform is good news for employees, it introduces significant operational challenges for small and medium businesses — particularly those still relying on legacy payroll systems or manual processes.
Why Payday Super Is a Major Shift for Employers
Under the current system, employers have up to 28 days after the end of each quarter to pay their employees’ superannuation contributions. Payday Super will change that entirely, requiring contributions to be made every pay cycle.
This means:
- Payroll and super systems will need to automatically calculate, validate, and remit contributions in real time.
- Finance and HR teams will need to adapt processes, retrain staff, and review internal workflows.
- Clearing houses and payroll software providers will need to update their systems to ensure full compliance.
For large enterprises with integrated finance systems, this may be a manageable adjustment. But for small businesses — especially those that currently rely on the Small Business Superannuation Clearing House (SBSCH) — the shift could be daunting.
CPA Australia Calls for an Extended Compliance Window
In a recent joint submission to the Australian Taxation Office (ATO), CPA Australia and several leading professional bodies called for a longer compliance transition period.
While the ATO has proposed a risk-based compliance approach for the first year (categorising employers into low, medium, and high-risk groups), CPA Australia argues that businesses need at least 24 months of additional support, extending the transitional relief period to 30 June 2028.
The reasoning is clear:
- Around 250,000 employers currently use the SBSCH, which won’t be compatible with Payday Super.
- Many employers will need to replace or upgrade payroll systems entirely.
- Small businesses face a steep learning curve and limited resources to manage this transition effectively.
CPA’s submission also calls for clearer definitions of terms such as “reasonably practicable”, guidance on voluntary disclosure processes, and better support for employers impacted by fund mergers, rejected contributions, and third-party delays.
In short — the accounting profession is urging the ATO to make this reform fair, practical, and achievable.
What This Means for Small Businesses
If you’re a small business owner, these changes will affect how your payroll operates day-to-day. It’s not just about updating software; it’s about ensuring compliance, accuracy, and readiness.
Here are a few key steps to take now:
- Audit your current payroll and super processes.
Review how super is calculated and when it’s paid. Identify any inconsistencies or delays that could create issues once real-time payment rules apply. - Engage your accountant or payroll advisor early.
Discuss whether your existing payroll software supports Payday Super compliance and what upgrades or integrations may be required. - Review your clearing house provider.
If you currently use the SBSCH, plan ahead to migrate to a new provider well before mid-2026. - Document internal processes and controls.
The ATO will assess employers based on their risk profile — maintaining clear records of your compliance steps can help demonstrate good faith and reduce risk. - Use technology to automate compliance.
Payroll automation and data-driven audit tools can dramatically reduce manual workload and improve accuracy, ensuring contributions are processed correctly and on time.
How Subi Helps Businesses Get Payday Super Ready
At Subi, we work with accounting firms, law firms, and small businesses to make wage and super compliance simple, accurate, and audit-ready.
Our platform securely connects to your payroll data, runs automated checks against award requirements and contribution timing rules, and generates reports that help you identify risks before they become liabilities.
Whether you’re an employer preparing your systems for Payday Super or an advisor supporting clients through the transition, Subi provides the data confidence and compliance clarity you need.
We’re already helping businesses audit their payroll and super data to get “Payday Super ready” — and the earlier you start, the smoother the transition will be.
A Fair Reform Needs Practical Support
There’s no question that Payday Super is a positive step for Australian workers. But for businesses, the success of this reform depends on a realistic transition timeline and accessible tools that simplify compliance.
By planning early, auditing your data, and leveraging automation, small businesses can not only meet their new obligations but also strengthen overall payroll governance.
If you’re a small business owner and want to chat about how to best set yourself up for success ahead of Payday Super, the Subi team would be happy to help.
Get in touch to learn more about how Subi can support your transition to Payday Super compliance.
Read CPA Australia’s full article here: https://www.superreview.com.au/news/superannuation/cpa-calls-extended-payday-super-compliance-window
Final Thoughts: Make Wage Compliance a Cultural Priority
Wage compliance isn’t just about avoiding penalties — it’s a reflection of your organisation’s values. Getting payroll right shows employees that you respect their time, their work, and their trust.
Regular wage audits transform compliance from a cost into a competitive advantage. They protect leadership, strengthen governance, and reinforce culture.
Subi helps businesses turn compliance from a reactive process into a proactive strength.
Schedule a wage audit or book a spot check today at www.subi.au to see how our technology can help protect your business.