Payday Super is law from 1 July 2026. Here's every date that matters.

Key dates: from announcement to enforcement

1. May 2023 - Federal Budget announcementThe Albanese Government announced Payday Super as part of the 2023-24 Budget. The stated objectives were to improve retirement outcomes for workers, reduce unpaid super, and increase transparency.
2. November 2023 - Consultation paper releasedTreasury released a detailed consultation paper outlining the proposed framework, including the 7-day payment window and the alignment of super with each pay cycle.
3. 2024 - Exposure draft legislationExposure draft legislation was released for public comment. Key industry bodies including the Australian Institute of Superannuation Trustees, COSBOA and CPA Australia provided submissions.
4. 2025 - Legislation passedThe Treasury Laws Amendment (Delivering Payday Super) Bill passed both houses of Parliament, establishing the legal framework for the 1 July 2026 start date.
5. 1 July 2025 - SG rate rises to 11.5%The Superannuation Guarantee rate increased to 11.5%, the penultimate step before the final 12% rate takes effect alongside Payday Super.
6. 1 July 2026 - Payday Super commencesAll employers must pay super with each pay run. The SG rate simultaneously rises to 12%. Super must reach the employee's fund within 7 business days of payday.
7. 28 July 2026 - First quarterly deadline under old rulesThis would have been the Q1 FY2027 quarterly super deadline under the old system. Under Payday Super, employers will have already paid 4 weeks of real-time super by this date.
8. August 2026 - First potential Lockdown DPN windowFor employers who missed super on their first July payday and have not reported the shortfall, the 60-day Lockdown DPN clock starts ticking from the date wages were payable.

What happens if you are not compliant

The Superannuation Guarantee Charge

If super does not reach the employee's fund within the 7-day window, the employer becomes liable for the SGC. This is not simply the unpaid super amount. The SGC comprises:

• The shortfall amount - the super that should have been paid, calculated on total salary and wages (not just ordinary time earnings)
• Interest charge - 10% per annum on the shortfall, compounding from the original due date
• Administration fee - $20 per employee per quarter affected
• Non-deductibility - the entire SGC amount is not tax deductible, unlike regular super contributions

Director Penalty Notices

The ATO issued 84,529 Director Penalty Notices in 2024-25, covering $5.5 billion in liabilities - a 136% increase over the prior year. Under Payday Super, the DPN regime becomes even more aggressive:

• Lockdown DPN - issued when the company has failed to report the SGC shortfall within 60 days of the date wages were payable. Personal liability is automatic. There is no 21-day remediation period. The director is personally liable from the moment the DPN is issued.
• Non-lockdown DPN - issued when the shortfall has been reported but not paid. The director has 21 days to pay the debt, appoint a voluntary administrator, appoint a Small Business Restructuring practitioner, or appoint a liquidator.
• Multiple directors - liability is joint and several. Every director of the company at the time of the obligation is personally liable.

Payroll system changes required

What needs to change

• Payroll software configuration - your system must calculate and initiate super payments with each pay run, not accumulate them for quarterly processing. Most major payroll platforms (Xero, MYOB, QuickBooks) have released or are releasing Payday Super updates.
• Super clearing house - confirm your clearing house can process real-time payments and that it will transmit to employee funds within the 7-day window. The ATO's Small Business Superannuation Clearing House will support Payday Super.
• Bank account management - ensure sufficient funds are available on each payday to cover both wages and super simultaneously. This is where cash flow planning becomes critical.
• Employee records - verify all employee super fund details are up to date. Rejected payments due to incorrect fund details still count as late and can trigger the SGC.
• Reporting - Single Touch Payroll (STP) reporting will be updated to reflect real-time super obligations. Ensure your STP configuration is current.

The hidden cost: cash flow

Under the quarterly system, a business with $40,000 in monthly wages holds approximately $14,400 of super float on average at any given time. That cash sits in the business account, quietly funding operations. From 1 July 2026, that float drops to near zero.

The businesses hit hardest are those with long debtor days - construction subcontractors waiting 60+ days for progress payments, agencies billing monthly in arrears, wholesalers on 30-day terms with big retailers. You pay super in real time, but your clients pay you on their schedule.

This is not a compliance problem. It is a cash flow problem. And the solution is not better bookkeeping - it is having access to a cash buffer that can absorb the timing mismatch.

How to prepare in the next 30 days

1. Week 1: Model the cash flow impact. Calculate your total weekly super obligation (total wages x 12%). Multiply by the number of weeks in a quarter to see how much float you lose. Use the Payday Super Calculator for an instant estimate.
2. Week 1: Check your payroll software. Contact your payroll provider or check their website for Payday Super readiness. Xero, MYOB, and QuickBooks have all published migration guides. Update to the latest version.
3. Week 2: Verify employee super fund details. Run a report of all employee super fund details. Contact employees with missing or outdated fund information. Rejected payments due to incorrect details still trigger the SGC.
4. Week 2: Confirm clearing house compatibility. Check that your super clearing house supports real-time processing. If you use the ATO Small Business Superannuation Clearing House, confirm your registration is current.
5. Week 3: Arrange a cash flow buffer. Apply for a business overdraft or line of credit through OverdraftMe. A pre-approved facility costs approximately $15-$30 per week in line fees when unused - that is insurance against a cash flow crisis in July.
6. Week 3: Brief your bookkeeper or accountant. Ensure whoever manages your payroll understands the new real-time super requirement and the 7-day payment window.
7. Week 4: Run a test scenario. Before 1 July, simulate your first pay run under the new rules. Confirm the payment workflow from payroll calculation through to clearing house submission. Identify any gaps before they become real problems.

Funding the transition

A business overdraft is the most cost-efficient tool for bridging the Payday Super cash flow gap. It is revolving, so you draw when you need it and repay as cash comes in. Interest is charged only on drawn amounts. An unused facility costs only a small line fee.

For a detailed comparison of overdrafts, lines of credit, and term loans for the Payday Super transition, see our Payday Super Cash Flow Solutions guide.

Key eligibility for non-bank finance through OverdraftMe:

• ABN active 6+ months
• Monthly revenue $6,000+
• Equifax score 550+
• No tax returns required under $150K
• ATO debt accepted with payment plan