Payday superannuation is coming, and trade business owners running their own payroll need to prepare now. From 1 July 2026, employers will be required to pay superannuation guarantee contributions at the same time as wages, replacing the current quarterly system.

The reform, legislated by the federal government, is designed to reduce super underpayment — estimated at billions of dollars annually. But it will increase cash flow pressure for businesses paying staff weekly or fortnightly, according to reporting by The West Australian.

For trade businesses with apprentices or casual workers on variable hours, the shift is significant. Under the current system, employers can hold super contributions for up to three months before they fall due. Under payday super, every pay run triggers a super payment, meaning businesses must have enough cash on hand at each pay cycle to cover wages and super simultaneously.

Payroll software providers and clearing houses are updating their systems ahead of the deadline. Business owners using older or manual payroll setups should check with their accountant or bookkeeper now to confirm their system will handle the change correctly from day one.

The ATO has flagged it will monitor compliance closely from the start date. Trade business owners unsure of their obligations should visit ato.gov.au or speak to their accountant before the end of the financial year.

Editors: verify the 1 July 2026 start date against ato.gov.au before publishing — implementation dates for this reform have shifted previously.

Frequently asked questions

When does payday super start?

The current legislated start date is 1 July 2026. Verify against ato.gov.au before acting, as the date has shifted previously.

How is payday super different from the current system?

Currently, employers pay superannuation quarterly. From 1 July 2026, super must be paid at the same time as each wage payment — weekly, fortnightly, or however often you pay staff.

What does payday super mean for cash flow?

Businesses will need enough cash on hand at every pay cycle to cover both wages and super together, rather than holding super funds for up to three months before they fall due.

What should trade businesses do to prepare?

Check that your payroll software will handle the change, speak to your accountant or bookkeeper, and visit ato.gov.au for the latest guidance on your obligations.

Sourced from The West Australian. Original article.