RA Business Advisors

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Payday Super is Coming: What Small Business Owners Must Do to Stay Compliant in 2026

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As an accountant who works closely with small and medium-sized businesses every day, I understand how challenging it can be to keep up with changing legislation — especially when it comes to payroll and superannuation compliance. And now, there’s another big change on the horizon: Payday Super.

The Australian Government recently confirmed that, starting from 1 July 2026, employers will need to pay their employees’ super at the same time as wages. This change is being introduced to close the multi-billion dollar unpaid super gap and ensure employees receive their super entitlements promptly.

But for many small businesses, this shift is more than just a compliance tweak — it could mean major changes to how you manage your cash flow, payroll systems, and reporting processes.

What Is Payday Super and Why Is It Changing?

Right now, most businesses pay super guarantee (SG) contributions on a quarterly basis. For many of our clients, this works well — it’s predictable, easier to manage cash flow, and allows time to catch and fix errors.

But from 1 July 2026, that will change. The new system will require employers to pay SG on or before payday. The rationale behind this is understandable: the ATO wants to crack down on unpaid super and ensure that employees aren’t missing out on their retirement savings.

While the intent is positive, the implementation will create added pressure on small businesses that aren’t well-equipped to handle frequent super payments.

What This Means for Small Business Employers

This change could have a significant impact on how your business operates:

  • Cash Flow Pressure: Instead of setting aside super for quarterly payments, you’ll need to have it ready for every single pay run.
  • Payroll Software Readiness: If you’re still using manual spreadsheets or outdated systems, they won’t cut it in the new world of real-time SG payments.
  • Admin & Compliance Burden: There’ll be a greater demand for accurate, timely processing.
  • ATO Penalties: The ATO will have greater visibility through STP, making it easier to detect errors or delays.

Quick Checklist:

  • Are you using up-to-date, cloud-based payroll software?
  • Do you regularly reconcile wages and super in real-time?
  • Do your admin or payroll staff know what the 2026 changes mean?
  • Have you reviewed your cash flow cycles to account for more frequent outflows?

How to Prepare Now (and Avoid Stress in 2026)

The good news is that there’s still time to prepare — but you don’t want to leave it until the last minute.

Here’s what I recommend as a proactive accountant working in this space every day:

  • Upgrade Your Payroll Software: Tools like Xero, MYOB, or QuickBooks can automate SG payments and integrate with STP.
  • Conduct a Payroll Health Check: Review how you’re managing payroll and identify gaps.
  • Review Your Cash Flow: Adjust your payroll calendar and budgeting to account for frequent payments.
  • Train Your Admin Team: Everyone involved in payroll should understand the new rules.
  • Get Expert Support: We specialise in helping small businesses stay compliant with less stress.

Our Perspective as Payroll & Super Experts

At our firm, we specialise in supporting small and medium businesses across a wide range of industries — and payroll compliance is one of our core strengths.

We know that many business owners don’t have the time or resources to deep-dive into legislative changes. That’s where we step in. From helping you modernise your systems to training your staff and ensuring you’re ATO-ready, our job is to make sure you stay compliant without adding stress to your plate.

📞 Book a Free Business Check-Up

Let’s review your payroll systems, assess your SG compliance, and help you plan for the transition to Payday Super — before it becomes a problem.

👉 Click here to book your free business check-up

The Tortoise and the Hare’s Inheritance

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One of our enthusiastic staff enjoys writing children’s stories in her spare time and she certainly has a flair for it.  Below is one of her stories that she thought might be a little heavy for her target audience, but may have some relevance for some of us bigger kids:

“Both the tortoise and the hare were given an inheritance of $1 million dollars – a bitter sweet occasion which changed their lives forever.

Both had big plans for the money, but the outcomes were vastly different.

The hare only wanted to be faster, so he bought a sports car, he employed a personal trainer and a luxurious spa for his training recovery. This was his first mistake.

The tortoise, on the other hand, was in no rush, he had a long life ahead and wanted to plan accordingly. He didn’t change his lifestyle but instead invested in a house that would stand for centuries, so he could have a stable place to relax with his growing family.

The hare’s purchases exceeded $1 million so he took out a loan. This was his second and most serious mistake. The interest payments made him resent his new spa and left him stressing over his ever-growing debt every day – something he could no longer run away from.

Meanwhile, the tortoise’s house, while it cost $1 million initially, required no loan and was instead generating money without the tortoise having to move a muscle.

Being the good friend, he was, the tortoise used the profits from his house to pay off the hare’s debts and allow them both to live comfortably together.

Sometimes the fastest solution isn’t the most effective, as nothing worthwhile is instant or easy, and for the most part nothing easy is worthwhile.”

To learn how you can follow in the tortoise’s foot steps and better manage your money call us today on 07 3367 0852!