Payday Super: What It Means for Your Business Cashflow
PayDay Super is coming in on July 1 2026. As the ATO points out, employers will be required to pay their employees’ superannuation guarantee (SG) at the same time as their salary and wages. From 1 July 2026, super must be paid on payday – no more quarterly cycles.
The big question, however, is what impact this will have on cashflow.
The bottom line: businesses need to plan ahead and be prepared for what happens to their cash. And that means now! Businesses should review their payroll systems and super processes and get ready to pay super guarantee more frequently.
There’s no doubt PayDay Super will have an impact on cash flow.
It eliminates the three-month buffer many businesses relied on and replaces it with super payments that align with every pay run.
This is more than just a compliance issue for any business running on tight margins. Why? Because for those businesses, it transforms superannuation from a future liability to an immediate cash commitment alongside wages. And that means cash flow forecasting, payroll, and workforce planning must now work in sync, not in isolation.
To prepare, employers should take several steps. These involve conducting a cash flow analysis to identify potential gaps, maintaining a larger cash reserve if necessary and reviewing supplier payment terms and invoice cycles to improve liquidity.
Other advice includes reviewing employee onboarding processes to make sure the business gets the right information and correct details to minimise the risk of rejected contributions, considering any payroll and system updates that may be required to comply with Single Touch Payroll (STP) requirements in respect to the new Payday super system, reviewing wage codes in the payroll system and reviewing agreements and processes with clearing houses.
Why is this important?
It’s simple really. Payday Super means super payments go out more frequently. And that reduces any flexibility in how businesses have managed short-term working capital. In the past, a quarter’s worth of unpaid super liabilities could temporarily support cash flow – that buffer will now disappear.
We can support you
If you are concerned about the impact of PayDay Super on cashflow in your business, please contact us now so we can support you in preparing and remove confusion, stress or worry. Together we can ensure you are prepared for this significant change.
