Payday super starts July 2026: Act now to help manage your cash flow impacts
From 1 July 2026, superannuation payments shift from quarterly to payday. For most business owners, this change hasn’t even registered yet – but it will have a major direct impact on cash flow.
In our strategic planning sessions over the past few months, we’ve been working through what this means for clients who are building toward bigger goals. The conversation keeps coming back to the same issue: most businesses haven’t factored this into their cash flow planning, and if they wait until mid-2026 to address it, they’ll face a cash crunch at exactly the wrong time.
Here’s what’s changing, why it matters for your business, and how to prepare now so it doesn’t disrupt what you’re trying to achieve.
What’s changing (and why it matters for your business)
From 1 July 2026, super moves from quarterly to payday. Every time you pay wages, superannuation needs to be paid same day.
The amount doesn’t change. The timing does.
For most of our clients – businesses turning over $1 million plus with 5-10 employees – quarterly super is $15,000 to $40,000. Moving that to fortnightly or monthly changes your cash position immediately.
And if you’re planning your business cash flow, or looking to invest in equipment, or build wealth outside the business, cash flow timing isn’t just admin. It’s a strategy.
The mistake we’re seeing businesses make
Not planning for this change and leaving it until June or July 2026 to deal with.
Which means they’ll have:
- Final quarterly or monthly super payment in July 2026
- New payday super starting in July 2026 – paid each time you pay your employees
- Double or quadruple their normal super paid in cash in one month of July 2026
For a business with eight employees, that could be $30,000-$50,000 in one month.
That’s not a compliance issue. That’s a cash management disaster that affects everything else you’re trying to achieve.
How to prepare (without disrupting your business)
Start paying super monthly now. Not because you have to. Because it protects your cash flow for the next 18 months.
Here’s the transition we’re taking clients through:
Model and shift to monthly
Work out what moving from quarterly to monthly super does to your cash position over the next 6 months. Then start paying monthly, even though quarterly is still allowed.
This spreads the adjustment over time instead of hitting you in one month.
By the time July 2026 arrives, it’s just normal business.
Why this matters for your strategic planning
We don’t look at payday super as a compliance exercise. We look at how it affects your capacity to do what you’re actually trying to achieve.
If you’re planning to purchase business premises in the next few years, you need predictable cash flow and available capital. Money tied up in unplanned super payments is money you can’t use for your deposit or to strengthen your financial position.
If you’re focused on wealth creation – recycling profits into investment property, superannuation, or growing the business – tighter cash flow means less flexibility to move when opportunities come up.
This is why we’re working with clients now to get ahead of the change. Not in June 2026 when you’re trying to close a property deal or fund an expansion.
What else is changing
From 1 July 2026:
- The ATO’s Small Business Superannuation Clearing House shuts down.
- Late payments attract daily interest plus administrative penalties.
- The ATO sees late payments through Single Touch Payroll immediately. No grace period, no hiding.
- The maximum contribution base moves from quarterly to annual.
How we’re helping clients prepare
We’re modelling the cash flow impact of moving to monthly or per-pay super, adjusting forecasts to show the cash position over the coming months, and helping them set up systems so payments are automated.
The businesses getting this sorted now will have smooth transitions. The ones waiting will be dealing with cash flow stress at exactly the wrong time.
Talk to us now
Don’t wait until July 2026 when it’s too late. Get this sorted now while there’s time to do it properly.
We can model the cash flow impact and help you transition smoothly. Book a session with Sharp Accounting.
