- Ben Kearney
- 4 days ago
One of the biggest changes to employer superannuation obligations in decades takes effect from 1 July 2026. From today, you will be required to pay your employees' super guarantee contributions at the same time as their wages. The current system, which allows employers to pay super quarterly, will end.
For many small business owners, this is a significant shift in cash flow management. Instead of setting aside super and paying it four times a year, you'll need to pay it with every payroll run, whether that's weekly, fortnightly, or monthly.
Parliament passed the legislation in November 2025, the regulations were released in February 2026, and the clock is now ticking.
What Changes on 1 July?
Pay super with every pay cycle: Instead of paying SG contributions quarterly, you must pay them alongside each payroll run — weekly, fortnightly, or monthly, depending on how you pay your staff.
7 business day clearance deadline: Super contributions must be received by the employee's super fund within seven business days of each pay day. This is non-negotiable — late payments may attract penalties.
New "Qualifying Earnings" definition: The basis for calculating super changes from Ordinary Time Earnings (OTE) to Qualifying Earnings (QE), which is broader and includes some salary sacrifice amounts. Check with your accountant if you're unsure whether your calculations need updating.
SuperStream 3.0 begins: The ATO's updated data standard for super payments (SuperStream 3.0) takes effect 1 July. Most payroll software will update automatically — but confirm with your provider.
Small Business Clearing House Closed 30 June
The ATO's Small Business Superannuation Clearing House (SBSCH) stopped accepting new users in October 2025 and shut down entirely at the end of June 2026. Options include using your super fund's clearing house, your payroll software's built-in super payment tool, or a third-party clearing house.
ATO's Compliance Approach
The ATO has stated it will be taking a reasonable, supportive approach in the first year (1 July 2026 to 30 June 2027), focusing on businesses that genuinely try to comply and correct errors quickly. Businesses that make a good faith effort to pay on time and fix mistakes won't be harshly penalised. However, this does not mean the rules aren't enforceable — the ATO will still pursue deliberate non-compliance.
Action List - What retailers need to do now:
Confirm your payroll software is SuperStream 3.0 ready,
Find an alternative to the SBSCH if you use it,
Talk to your accountant about the new "Qualifying Earnings" definition, and
Update your payroll processes to pay super with every pay run from 1 July.