From 1 July 2026, all Australian employers will face a significant shift in how they manage superannuation.
Under the new Payday Super laws, employers must pay employees’ Superannuation Guarantee (SG) contributions at the same time as wages, with funds reaching the employee’s super account within seven business days of payday. This replaces the current quarterly payment cycle and introduces tighter compliance requirements.
Adding to the challenge, the ATO’s Small Business Superannuation Clearing House (SBSCH) will close on 1 July 2026, and new registrations have ceased from October 2025. Businesses relying on this free service must transition to alternative solutions, such as payroll-integrated clearing systems or commercial providers, well before the deadline. For more details, check out Payday Super | Australian Taxation Office.
Why This Matters
As insolvency and turnaround professionals, we regularly see businesses struggle when they fail to adapt to legislative changes. Common causes of financial distress include:
Poor cash flow management
Delayed response to regulatory changes
Inadequate systems and processes
The Payday Super reforms will increase cash flow pressure, particularly for small businesses accustomed to quarterly super payments. Moving to weekly, fortnightly, or monthly super contributions means businesses must plan for more frequent outflows and ensure payroll systems can handle real-time compliance.
Failure to prepare could lead to:
Penalties and interest charges for late payments
Superannuation Guarantee Charge (SGC) liabilities
Increased risk of insolvency due to unmanaged cash flow shocks
What Businesses Should Do Now
Review Cash Flow Forecasts
Model the impact of paying super with each pay cycle rather than quarterly. Identify short-term and medium-term liquidity risks.Update Payroll Systems
Ensure payroll software can process super contributions alongside wages and comply with SuperStream requirements.Plan for Clearing House Transition
If using the SBSCH, select and implement an alternative solution early to avoid last-minute disruptions.Educate and Prepare
Communicate these changes to clients and staff, and schedule internal testing well before July 2026.
How Worrells Can Help
At Worrells, we believe being prepared is the best way to avoid pitfalls. Our team offers cash flow consulting and forecasting services to help businesses:
Assess the financial impact of Payday Super
Implement robust cash flow management strategies
Transition payroll systems and processes smoothly
If your clients need assistance to implement or improve their cash flow management to maintain financial stability, contact Worrells today and enquire about our bespoke consulting services. Together, we can help them navigate these changes and set them up for success.
Read more about payday super - What payday superannuation reforms mean for businesses | Worrells
