Payday Super – A Practical Checklist for Employers
Helping employers navigate Australia’s Payday Super changes with practical, easy-to-understand guidance.
Payday Super – A Practical Checklist for Employers
It’s now been a couple of weeks since Australia’s Payday Super changes commenced. Many employers will now have completed at least one payroll cycle under the new requirements, making this an ideal opportunity to review their payroll processes.
Now that the initial implementation is behind us, it’s worth taking a few minutes to check that everything is operating as intended.
Every business is different, but there are several practical areas worth reviewing before small issues become larger ones. The following five checkpoints provide a practical starting point for reviewing whether your payroll processes are supporting the new requirements.
1. Are super contributions being paid on time?
One of the most significant practical changes under Payday Super is that employers generally move from quarterly super payments to making super contributions much closer to each employee’s payday.
Businesses should ensure their payroll processes are aligned with the new requirements and that payments are not simply following old quarterly routines.
Remember, what matters is when the contribution reaches the employee’s super fund, not simply when the payment is initiated. Allow sufficient processing time through your payroll software or clearing house to help ensure contributions are received on time.
2. Has your payroll software been updated?
Most major payroll software providers have introduced updates to accommodate Payday Super.
Even if software updates have been installed automatically, it’s worth confirming:
- payroll settings have been configured correctly;
- super payment dates align with your payroll cycle;
- employee fund details remain accurate; and
- any clearing house arrangements continue to operate as expected.
If your business previously relied on the ATO’s Small Business Superannuation Clearing House (SBSCH), now is also a good time to ensure your replacement payment process is operating smoothly.
3. Review employee fund details
Incorrect member numbers, outdated fund details or invalid super fund information can delay contributions.
Review:
- employee member numbers;
- fund details;
- stapled fund information where applicable; and
- new employee Choice of Fund forms.
Taking a few minutes to review employee records now may help avoid rejected payments later.
4. Watch your cash flow
For many businesses, the biggest adjustment is not the calculation of super, it’s the timing.
Rather than planning for quarterly super payments, many businesses will now find super becoming a regular part of each payroll cycle.
Businesses should ensure sufficient funds are available around each payroll cycle to meet both wage and super obligations.
5. Don’t forget new employees
When onboarding new staff, make sure:
- Choice of Fund forms are completed where required;
- employee details are entered correctly; and
- super fund information is verified before the first payroll where practical.
Good onboarding procedures often prevent future administration issues.
Example in Practice
Imagine a business with ten employees that previously paid superannuation every quarter.
Its payroll software has been updated, but the finance team continues following the old payment routine out of habit.
Nothing appears wrong initially, until they realise the payment timing no longer aligns with the new requirements.
A simple review of payroll procedures could identify the issue early and help avoid unnecessary complications.
A good opportunity for a health check
Now that businesses have had time to complete one or more payroll cycles under the new requirements, it’s worth stepping back to review how your processes are working in practice.
A short review today may identify small issues before they become larger administrative or compliance problems.
Quick Summary
✓ Confirm your payroll software reflects the new requirements.
✓ Check employee super fund details remain accurate.
✓ Review cash flow around each payroll cycle.
✓ Review your payroll processes to ensure they support the new payment timing requirements.
✓ Talk to your accountant if you’re unsure how the new requirements apply to your business.
Need advice tailored to your circumstances?
If you’re unsure how these strategies apply to you or would like tailored taxation, business advisory or SMSF advice, Compact Accounting would be pleased to help.
Disclaimer
The information contained in this article is of a general nature only and has been prepared without considering your personal objectives, financial situation or needs.
While every effort has been made to ensure the information is accurate at the time of publication, taxation and legal requirements may change.
Before acting on any information contained in this article, you should seek professional advice tailored to your individual circumstances.
References & Further Reading
- Australian Taxation Office – Payday Super guidance
- Australian Taxation Office – Super for employers
- Treasury Laws Amendment (Payday Superannuation) Act 2025 (Cth)
- Superannuation Guarantee (Administration) Act 1992 (Cth)
Last reviewed: July 2026
