Payday Super: What Do Australian Employers Need to Know?
Your super payments now follow your payroll cycle
Australia's new Payday Super rules are now in effect. If you employ staff, it is worth understanding how the change affects your payroll obligations and what you need to do to stay compliant.
What Is Payday Super?
Under the new rules, employers pay their employees' superannuation at the same time they process payroll. Your super schedule now follows your payroll cycle: whether you pay staff weekly, fortnightly or monthly, super goes out on the same schedule.
When Must Super Be Paid?
To be treated as paid on time, super contributions must reach your employees' super funds within seven business days of payday. Some exceptions apply, such as a longer timeframe for new employees.
Because processing times vary between payment providers and super funds, it is a good idea to submit payments early rather than waiting until the last minute.
Check for Payment Errors
One of the most common reasons for late super is a rejected transaction. If a payment bounces back, act quickly:
- Review the reason for the rejection.
- Correct any incorrect employee or fund details.
- Resubmit the payment as soon as possible.
Sorting issues out promptly keeps your super obligations on track and avoids unnecessary delays.
Don't Forget the July Transition
July is a particularly important month for employers. During this period you may need to make both:
- super payments for each employee payday, and
- your final quarterly super payment, due by 28 July.
Watch the allocation: any super paid before 28 July may first be applied to your outstanding quarterly obligations. Knowing how payments are allocated helps you manage cash flow and avoid confusion.
What If You're Still Adjusting?
Moving to Payday Super is a significant change, and many employers need a few payroll cycles to settle into the new process. The key is to take reasonable steps to comply and address any issues as soon as they arise.
To count as paid on time, super contributions must reach your employees' funds within seven business days of payday.
Unsure how Payday Super affects your business?
Now is the time to review your payroll processes. The OzLedger team can check your super obligations, review your payroll setup, and make sure your software is configured correctly.
This article is general information only and does not take into account your personal circumstances. It is not tax, legal or financial advice. Tax laws and thresholds change, and the figures here are based on ATO guidance current at the time of writing. Before acting, speak with a registered tax agent. The OzLedger team is always happy to help.