RA Business Advisors

super

Payday Super is coming: what small businesses need to know about Qualifying Earnings

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If you run a small or medium business in Australia, payroll compliance is about to change again. From 1 July 2026, employers will be required to pay superannuation on payday, not quarterly. This reform known as Payday Super is designed to improve employee outcomes, but it also means tighter processes and less room for error for business owners and admin teams. 

As accountants who specialise heavily in business payroll and compliance, we’re ready to help clients prepare.  

 

What is Payday Super, in plain English? 

Under the current system, most employers calculate and pay superannuation quarterly. Payday Super changes that rhythm. Instead, super will be calculated and paid in line with each pay cycle—weekly, fortnightly, or monthly—through upgraded SuperStream processes. 

This means super obligations will become part of your regular payroll workflow, not a separate quarterly task. From our experience, businesses that rely on manual workarounds or loosely defined pay items will feel this change the most. 

 

Qualifying Earnings (QE): the new term you need to understand 

Qualifying Earnings (QE) is the new base used to calculate Super Guarantee (SG) contributions under Payday Super. 

In simple terms, QE represents the earnings that super is calculated on each pay run, rather than being reviewed in arrears at the end of a quarter. The SG amount will be calculated as 12% of qualifying earnings, paid at the same time as wages. 

According to the Australian Taxation Office, QE closely aligns with what is currently considered salary or wages for super purposes—but the difference is timing and visibility. Errors will surface immediately, not months later. 

From a compliance perspective, this makes payroll accuracy more important than ever. 

 

What payments are included in Qualifying Earnings? 

While the legislation is still being finalised, the ATO has clarified that QE will generally include: 

  • Ordinary time earnings (OTE) 
  • Base salary and wages 
  • Allowances that are considered part of salary or wages 
  • Salary sacrifice amounts paid to super 

What matters most is how your payroll system classifies pay items. We often see issues where allowances, bonuses, or leave types are inconsistently set up. Under Payday Super, these misclassifications can lead to underpaid super on every pay cycle—not just once a quarter. 

The calculation itself isn’t complicated. Getting the data right is. 

 

What this means for payroll and cashflow 

From a practical standpoint, Payday Super has two major implications: 

  1. Cashflow timing changes
    Super will no longer be held and paid quarterly. Businesses will need to ensure sufficient cash is available at each pay run. This doesn’t increase the total cost of super—but it does change when the cash leaves your account.
  2. Payroll processes must be tighter
    With super calculated every pay cycle, there’s less room for manual fixes. Payroll systems need to be set up correctly, staff need clear processes, and reporting needs to be consistent.

For many businesses, this is where professional support makes a real difference. 

 

A practical Payday Super readiness checklist 

Based on what we’re doing with clients right now, here’s how we recommend preparing: 

  1. Review all payroll pay items and map them correctly to qualifying earnings 
  1. Confirm your payroll software will support Payday Super and SuperStream changes 
  1. Update cashflow forecasts to reflect pay-cycle super payments 
  1. Run test pay runs to confirm QE calculations and SG amounts 
  1. Document payroll processes so admin staff can apply them consistently 

The ATO has released employer resources, including checklists and fact sheets, but implementation is where most businesses need help. 

 

How we help 

Payroll and super compliance is a core part of our accounting practice. We work closely with businesses to review payroll setups, correct pay item classifications, and build processes that scale as your business grows. 

If you’d like us to review your payroll and help you prepare for Payday Super well before 1 July 2026, we’d be happy to help. Getting this right early puts you in control rather than scrambling later. 

Get in touch with our team to book a Payday Super readiness review.

 

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

How New Tax and Super Changes Will Impact Australian Small Businesses in 2025–26

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We’re on the brink of some significant shifts that could catch many business owners off guard if not prepared. Let’s break down what’s coming, how it may impact your cash flow, and most importantly, how you can stay ahead of the curve.

What’s Changing for Small Businesses

There are four major updates rolling out over the next 18 months to two years:

  1. Super Guarantee (SG) Increase to 12% – from 1 July 2025
    The SG rate is rising again — this time from 11.5% to 12%. While this might seem like a small jump, when you’re running weekly or fortnightly payrolls, that increase stacks up quickly.
  2. ATO Interest No Longer Tax Deductible – from 1 July 2025
    This one will sting: businesses will no longer be able to claim tax deductions for General Interest Charges (GIC) or Shortfall Interest Charges (SIC). In short, if you’re late paying tax, it’s going to cost you more.
  3. Payday Super is Coming – from 1 July 2026
    This is a major shift. Employers will need to pay super at the same time as wages, instead of quarterly. It’s great for employee entitlements, but for employers, it means tighter cash flow planning and possibly updating your payroll software or service provider.
  4. Closure of the Small Business Super Clearing House (SBSCH) – from 1 July 2026
    The free, government-run SBSCH will be shut down, meaning small businesses will need to find another way to make super contributions. For many, this means researching new clearing houses or possibly paying fees to private platforms.

What This Means for Your Business

In practice, these changes — particularly payday super and the SG increase — will put more strain on your working capital. For some businesses, that could mean the difference between comfortably meeting payroll and scrambling to cover shortfalls.

The removal of tax deductibility on ATO interest also raises the stakes. A few days late on your BAS or income tax, and the cost to your business could rise sharply. We’ve always advised clients to keep on top of tax due dates, but now it’s even more important.

How to Prepare: Proactive Steps You Can Take

Here’s what we’re recommending to our clients:

  • Review Payroll Systems Now: Your software should be ready for payday super. Not all systems are equipped for this, so now’s the time to review and upgrade if needed.
  • Budget for Higher Payroll Outgoings: That extra 0.5% super adds up — factor it into your forecasts now so you’re not caught out later.
  • Plan Cash Flow More Frequently: Move from quarterly to monthly (or even fortnightly) cash flow tracking. With super going out more regularly, you’ll need to keep a closer eye on available funds.

Why This Matters More Than Ever

Small businesses are resilient — but staying compliant and financially healthy in this evolving environment takes planning and the right support. These changes aren’t just red tape; they directly impact how you pay your people, meet your obligations, and stay out of trouble with the ATO.

We specialise in this space. Our firm works with small and medium businesses every day, and we know how to make these transitions smooth, strategic, and stress-free.

Need Help Getting Ready?

If you’re unsure how these changes will affect your business, or if you want to stress-test your payroll and cash flow processes — reach out. We offer tailored reviews and planning sessions so you can move forward with clarity and confidence.

👉Book a payroll health check or chat with our team today.

Are You Paying Enough Attention To Your Super?

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Are you paying enough attention to your super?

The tax incentives on Australians’ super contributions can welcome better investment returns in an environment full of low investment returns. Experts advise that by learning how to properly understand your super, and what it can do for you, you can save a lot of money.

Australian super contributions dropped 0.3 per cent last financial year, despite a growing working population and rising wages, with the June quarter falling a staggering 0.8 per cent. Wealth for Life Financial Planning principal Rex Whitford believes that the lack of trust between Australian people and the government has developed due to the chopping and changing of the rules when it comes to super. If you are unfamiliar with the latest super changes check out some of our ‘super’ blogs.

Despite the changes, super is still the most tax-effective structure to hold your life savings. Your super is more than just cold hard cash. It can hold property, bonds, shares, infrastructure, or a mixture of these. Maximum Wealth Advisers partner Mauro Grossi says that saving diverted to super at only 15 per cent – instead of your marginal tax rate – can add-up over time. “It’s not the government’s money. It’s your money for your future. If it was sitting in a bank account you would be far more worried about it.”

So how can super tax actually help?

  1. Earnings within super are taxed at only 15 per cent, rather than marginal tax rates
  2. Tax-deductible contributions, such as salary sacrifice, get taxed just 15 per cent. Whereas your wage income tax can be up to 49 per cent.
  3. Tax on withdrawals, income and capital gains for most people aged over 60 is zero
  4. The planned rule changes do not affect these tax rates. They only cap how much you can contribute, and will adjust super savings above $1.6 million per person out of the zero-tax environment and into the 15 per cent tax environment.

We highly recommend that you invest some time into understanding your super and learning what it can do for you, even before retirement. We have a team of highly trained, and knowledgeable experts that would love to have a chat with you, should you wish to learn more.