Payday Super changed the cash timing. Here's how to keep up

For years, many small employers treated quarterly super as a quiet float. Wages went out weekly; super for the quarter sat in the account until the due date, smoothing out the lumpy months. Payday Super ended that on 1 July 2026. The bill is the same size, but it now leaves with every single pay run.

What changed on 1 July 2026?

Before 1 July 2026	From 1 July 2026
Super could be paid quarterly, due 28 days after the quarter ended	Super paid with each pay run
Several weeks between paying wages and paying super	Must reach the fund within 7 business days of payday
Small Business Superannuation Clearing House available to existing users	SBSCH no longer accessible
SG rate 12% (from 1 July 2025)	SG rate still 12%

The ATO and the Fair Work Ombudsman both point out that late payments can attract extra charges and may breach workplace obligations, so this isn’t a deadline to stretch.

Why does it create a cash gap?

Two reasons.

You lost the float. If your payroll is around $40k a fortnight, quarterly super used to let roughly a quarter’s worth of super sit in your account for weeks. That cash now leaves every fortnight.

The transition quarter overlapped. Super for April–June 2026 still followed the old quarterly rules and had to reach funds by 28 July 2026, while Payday Super contributions started with July pay runs. The ATO itself warned employers they might have multiple super payments due during July 2026. Businesses that relied on the float found two lots of super leaving close together.

Neither changes your profit. Both change your cash.

How do you work out the new gap?

1. Work out super per pay run (12% of each employee’s qualifying earnings; your payroll software does this).
2. Add it to the wage bill for each payday on your cash calendar.
3. Compare the new outgoings with when money actually arrives.

The cash gap calculator lets you enter each pay run (wages plus super) against expected income and shows where the balance dips below your comfort level.

Super timing squeezing payroll week? Tell us what’s due and a real person will help you plan the gap.

How are businesses covering the change?

Rebuilding the buffer. The simplest long-term fix is to hold an extra pay cycle’s worth of super in reserve. That takes time to build.

Shifting income earlier. Shorter payment terms, deposits on jobs and faster invoicing bring cash in closer to payday. Our guide to getting invoices paid faster has practical steps.

A cash line for pay weeks. A business cash line can cover the pay-week dip and be repaid as invoices land. Because it’s only drawn when needed, the cost tracks the gap.

A one-off top-up. If you just need to rebuild the float once, a short-term cash loan can do it in a single step.

A quick Payday Super cash check

Ask yourself these five questions. If you answer “no” or “not sure” to any of them, it’s worth a closer look:

1. Does your payroll software calculate and pay super with each pay run?
2. Do you know the exact super amount leaving after each payday?
3. Is that amount on your cash forecast, on the right dates?
4. Does your account stay above your comfort level in pay weeks?
5. Do you have a plan for leave payouts, bonuses or overtime spikes, which increase super too?

Most owners find the change manageable once the dates are mapped. The trouble comes from not noticing the new rhythm until a tight week arrives.

What not to do

• Don’t delay super to pay suppliers. Super and wages come first; late super carries penalties that cost more than bridging finance.
• Don’t let the BAS slip to cover super. That just moves the problem. See the BAS quarter cash crunch.
• Don’t guess. Run the numbers for the next 12 weeks so you know whether the gap is a one-off or ongoing.

An illustrative example

Illustrative only. A Townsville hospitality group with 22 staff pays wages fortnightly. Before July 2026 it paid super quarterly and always had cash on hand. Now around $9k of super leaves every fortnight with wages. In quieter weeks the account dips below the owner’s comfort level for about five days each cycle. A modest cash line covers those days, and the owner is rebuilding a reserve over the summer.

Keep your people paid on time, every time

Payday Super is good for employees and manageable for employers, once the cash timing is planned. If it’s left a gap in your account, let’s talk. The enquiry takes about a minute, there’s no credit check when you enquire, and your details stay with one team rather than going out to a list of lenders. A real person looks at your payroll pattern and gives you a call.

Please give us accurate figures for payroll size and frequency. That’s how we size the right cushion.

Plan my pay-week cash →