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ATO’s New Payday Super Initiative: What You Need to Know

Date: 23 July 2025

ATO’s New Payday Super Initiative: What You Need to Know

The Australian Taxation Office (ATO) has announced a significant change to superannuation obligations. From 1 July 2026, employers will be required to pay their employees’ superannuation on payday, rather than quarterly. This initiative, known as “Payday Super,” is aimed at improving retirement outcomes by ensuring employees receive their super contributions more regularly and reducing the risk of unpaid super.

What this means for employers:

  • More frequent super payments: Super will need to be paid at the same time as wages, requiring adjustments to payroll workflows.
  • Cash flow planning: Businesses should start reviewing their cash flow practices to accommodate the change.
  • Compliance readiness: It’s important to start preparing now, even though implementation is still a year away.

Good news for Xero and MYOB users:
If you already use Xero or MYOB, you’re in a strong position. Both platforms offer integrated superannuation clearing services that can handle more frequent payments with minimal additional effort. These systems are expected to support Payday Super well before the deadline, making the transition smoother for businesses using cloud-based payroll solutions.

We recommend reviewing your payroll setup and reaching out to us to ensure you’re ready to meet these new requirements.

If you need help assessing your readiness or have questions about how this affects your business, our team is here to support you.

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To get in touch with our team, start by emailing us at enquiries@rm.net.au

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