With payday super commencing at the end of this month, employers need to prepare for a complex changeover period that could significantly impact cash flow during July 2026.

From 1 July 2026, employers must pay superannuation guarantee each payday instead of quarterly. Super payments must reach employees’ funds within seven business days after payday, marking the end of the current quarterly system that’s operated for decades.

July 2026 presents unique cash flow pressures as employers navigate dual payment obligations. You’ll need to make your final quarterly payment for the April to June period by 28 July, while simultaneously beginning payday super payments for July pay runs.

The timing is important. Super payments for July paydays may be due before the final quarterly payment deadline of 28 July.

Any contributions received on or before 28 July will first reduce amounts owing for the June quarter, with remainders then applied under payday super rules.

The final quarterly payment for the June quarter must reach employees’ super accounts by 28 July 2026. Missing this deadline triggers super guarantee charge obligations, with statements due by 28 August. Importantly, the late payment offset won’t be available for this final quarterly payment.

For tax deductibility, any superannuation guarantee contributions must be received by the fund by 30 June 2026 if you want them to be tax deductible in the 2025–2026 income year. This rule hasn’t changed under payday super.

From 1 July, super is calculated on “qualifying earnings” rather than “ordinary time earnings”. For most employees this won’t change the amount of super you pay, however, the key differences are that all commissions (even those earned outside ordinary hours) are now included, and salary sacrificed amounts that would otherwise be qualifying earnings must also be counted. Previously, SG and the super guarantee charge were calculated on different bases; both now use qualifying earnings, simplifying compliance.

Critically for the transition, the payment date is what counts: even for work performed before July, super is calculated under payday super rules when contributions are paid from 1 July onwards.

The ATO recommends reviewing expected pay cycles for July to understand cash flow impacts. Consider setting aside additional funds to meet dual obligations during the changeover.

If cash flow permits, paying your June quarter super on or before your first July payday offers a smoother transition with time to correct any rejected payments before the 28 July deadline. Additionally, all June quarter super contributions will be tax deductible in 2025–2026 if funds receive them by 30 June 2026.