Aussie SMEs remain underprepared for Payday Super, research shows

Two in five Australian businesses have still not reviewed or are unsure of their cash flow impact, ahead of Payday Super coming into effect on 1 July 2026, according to a new Employment Hero survey.

From July, Australian employers must pay their employees’ superannuation guarantee contributions at the same time they pay their salary and wages, rather than on a quarterly basis. This reform requires super funds to receive contributions within seven business days of the employee’s payday.

The results of a new survey from Employment Hero highlight the operational and financial impacts the reforms may have on businesses, particularly SMBs already navigating rising operating costs, wage pressures, and tighter cash flow conditions.

Rob Dunn, general manager of payments, superannuation and benefits at Employment Hero, noted that despite the company working with the Australian Taxation Office (ATO) and the government since Payday Super was announced to assist employers in preparing for 1 July, it was found that the financial pressure of the transition is becoming a very real challenge for SMBs with weeks to go.

Employment Hero modelling showed that businesses need an average of $124,000 in additional working capital, as many businesses face a confluence of factors that could considerably impact their cash flow.

Employment Hero’s latest Jobs Report showed wage growth rising 1.6 per cent month on month, its strongest increase in more than six months, with annual growth remaining elevated at 4.8 per cent and continuing to outpace inflation, adding further strain on already tight cash flow conditions.

Dunn said: “The biggest concern we’ve heard consistently from employers is their liability for ensuring funds land within only seven business days.”

The ATO has provided its Practical Compliance Guideline to help businesses with the Payday Super transition, but emphasised that full compliance is still mandatory from 1 July.

Dunn said: “Risk-based enforcement framework and businesses are still required to be compliant from 1 July. So, the businesses approaching this well aren’t banking on leniency.”

“They’re using the final month between now and 1 July to test payroll workflows, validate employee fund details and identify any operational bottlenecks before the new rules come into force.”

While the official deadline is fast approaching, the proactive measures being taken by a segment of employers provide an encouraging sign. This readiness is particularly visible in the shift towards more frequent super payments being processed through AI platforms implemented by Employment Hero.

“Automated platforms like HeroClear with inbuilt super calculation, payment and reconciliation make on-time, compliant payment much easier and faster. For any business not yet across this, the message is straightforward. Review your cash flow, check your systems and make sure you’re ready from day one,” Dunn said.

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