Payday Super: Start Preparing Your Cashflow Now

Remember when superannuation was one of those “set it and forget it” things?

Pay your staff, squirrel away their super once a quarter, job done. Well, that game is about to change. From 1 July 2026, employers will have to pay super at the same time as wages.

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That’s right – no more quarterly catch-ups.

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It’s being called Payday Super.

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Why the change?

The ATO reckons too many employees were missing out on their super (because businesses either delayed or “forgot” to pay it). By syncing it with payroll, employees get their super faster and more securely. Good news for workers.

But what about business owners?

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The not-so-hidden catch: working capital

If you’ve been using that three-month lag as a bit of a float, payday super is going to feel like a cash-flow tightening noose. Super will hit your bank account weekly, fortnightly, or monthly – whenever you run payroll.

This means:

• Less breathing room – money that once sat in your account for up to 3 months will now be out the door almost straight away.
• More frequent cash planning – payroll and super become joined at the hip, so one misstep could bite.
• System upgrades – your payroll processes need to be airtight.

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What to do now

2026 sounds far away, but trust me, it’s not. If you wait until then to “see how it goes,” you’ll be scrambling. Here’s how to get ahead:

• Map your cash cycle – understand when money comes in vs when it goes out.
• Model the impact – run a forecast as if you were already paying super with wages.
• Tighten debtor collection – you’ll need that money in sooner to fund payroll and super together.
• Build a buffer – a working capital reserve will take the stress out of transition.
• Talk to your accountant – no, really. There are strategies (like cash flow forecasts, debtor management systems, even short-term funding) to smooth the bumps.

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The bottom line

Payday Super is not just a compliance tweak, it’s a cash flow shift. The businesses that start planning now will glide through. The ones who leave it to the last minute will be the ones sweating over payroll.

So get on the front foot. The best time to prepare was yesterday.

The second-best time is now.

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– The team at PAL (making accounting slightly less boring since way back when)

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Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!

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