From 1 July, the way you pay superannuation fundamentally changes. The new Payday Super system requires contributions to be paid at the same time as wages. For private businesses or anyone engaging contractors, the implications are significant. Are you ready?
The challenge
As you know for employers the quarterly payment system is ending. What replaces it is more demanding both from a cashflow and compliance perspective. Whilst most commentary in the public domain to date on Payday Super focuses on payroll systems and cash flow, it misses the full picture.
From 1 July, Superannuation Guarantee(SG) contributions must be received by the employee’s super fund within seven business days of each payday. And the penalty for missing that window carries a default administrative charge of 60% of the shortfall amount.
For businesses that engage contractors, the complexity is even greater. Under Payday Super, every contractor payment that attracts SG obligations starts a seven-day clock. Accounts payable and payroll need to work in lockstep and currently, most do not.
The businesses most at risk are the ones who assume the changes do not apply to them.
Who this affects:
These changes affect all Australian businesses who currently pay SG contributions for their staff including, full-time and part-time employees, casuals and contractors.
Payday Super has direct implications for any business that pays employees or engages contractors. But certain sectors carry a heightened level of exposure:
- Construction & Trades: Subcontractors and sole traders engaged primarily for labour are frequently caught by the extended employee definition. Milestone payments, project completion fees and ad hoc invoices can all now trigger a seven-day SG window.
- Professional Services: Businesses in accounting, legal, consulting and technology that engage individual contractors for expertise are often in the grey zone. If those contractors provide their own labour rather than a distinct result, SG obligations may apply.
- Agribusiness: Seasonal workers, shearers and harvest labour engaged through informal arrangements require careful review under both the existing rules and the new framework.
- All Employers: If you pay wages, the shift from quarterly to per-payday super affects your payroll systems, cash flow forecasting and clearing house arrangements. The ATO’s Small Business Superannuation Clearing House closes on 30 June 2026.
Payroll and super governance.
With the new system only 7 weeks away Bentleys can:
- Assess whether your contractor arrangements already attract SG obligations
- Review your payroll and accounts payable processes and identify any gaps
- Transition from the ATO’s Small Business Superannuation Clearing House to a SuperStream-compliant alternative
- Model the cash flow impact of moving from quarterly to per-payday contributions
- Establish clear internal protocols so your team knows what to do with contractor invoices
- Support SMSF trustees receiving contributions to ensure their fund is technically ready
How we can help.
We work closely with employers across a wide range of industries to help them prepare for changes like Payday Super. Our focus is not just compliance, but practical implementation that supports your business day to day.
In our experience, businesses that will be prepared before the start date will be better positioned to avoid disruption, reduce risk and maintain confidence in their payroll processes.
If you would like to talk through how Payday Super affects your business, including payroll systems, cash flow and readiness, please contact us. We are here to help.
We encourage employers to start these conversations as soon as possible during May 2026, well before the rules change.
This article does not constitute financial product advice or technical advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Bentleys and its employees are not liable for actions taken based on this information.
