The transition to Payday Super is just months away, and employers need to prepare for a complex changeover period that could significantly impact cash flow during July 2026.

What’s happening?

From 1 July 2026, employers must pay superannuation guarantee each payday instead of quarterly. Super payments must reach employees’ funds within seven business days after payday, marking the end of the current quarterly system that’s operated for decades.

The July challenge

July 2026 presents unique cash flow pressures as employers navigate dual payment obligations. You’ll need to make your final quarterly payment for the April to June period by 28 July, while simultaneously beginning payday super payments for July pay runs.

The timing is important. Super payments for July paydays may be due before the final quarterly payment deadline of 28 July. Any contributions received on or before 28 July will first reduce amounts owing for the June quarter, with remainders then applied under payday super rules.

Critical deadlines

The final quarterly payment for the June quarter must reach employees’ super accounts by 28 July 2026. Missing this deadline triggers super guarantee charge obligations, with statements due by 28 August. Importantly, the late payment offset won’t be available for this final quarterly payment.

For tax deductibility, any superannuation guarantee contributions must be received by the fund by 30 June 2026 if you want them to be tax deductible in the 2025–2026 income year. This rule hasn’t changed under payday super.

From 1 July, super calculations change from ordinary time earnings to qualifying earnings.
Critically for the transition, the payment date is what counts: even for work performed before July, super is calculated under Payday Super rules when contributions are paid from 1 July onwards.

A practical example

Marcus operates a small business with eight employees and pays wages weekly on Fridays. During July, Marcus faces dual super obligations.

For the April to June quarter, Marcus calculates super as 12% of ordinary time earnings paid between 1 April and 30 June 2026. His final quarterly calculation includes the Friday 26 June payday.

His first Payday Super obligation applies to Friday 3 July 2026, with super calculated as 12% of qualifying earnings paid that day. This payment must reach employees’ super accounts by Tuesday 14 July.

Marcus makes his Payday Super payment on 3 July, and employees’ funds receive contributions on 8 July. He then pays his quarterly contribution on 12 July, received on 16 July.

Because both payments are received before 28 July, his Payday Super contribution reduces his June quarter obligation first. The remaining quarterly amount is then applied separately. By paying correct amounts for both obligations before 16 July, Marcus meets all requirements on time.

Managing the transition

The ATO recommends reviewing expected pay cycles for July to understand cash flow impacts. Consider setting aside additional funds to meet dual obligations during the changeover.

If cash flow permits, paying your June quarter super on or before your first July payday offers a smoother transition with time to correct any rejected payments before the 28 July deadline. Additionally, all June quarter super contributions will be tax deductible in 2025–2026 if funds receive them by 30 June 2026.

Getting help

The Payday Super transition involves complex timing requirements and significant operational changes. Each business will face unique challenges depending on pay cycles, employee numbers