From 1 July 2026, employers will be required to pay superannuation guarantee contributions at the same time as wages, with funds required to reach an employee’s super account within seven business days of the wages being paid. This replaces the current quarterly payment cycle.
These changes will have an impact on the way a small business operates.
The most obvious impact will be on cashflow. Businesses currently paying super quarterly will not pay more overall but will no longer be able to hold onto the cash for up to three months before payment is due. It means less cash sitting in the bank and more frequent outgoing payments. Where wages are paid weekly, super will now exit the business account weekly.
As superannuation contributions must now be paid at the same frequency as wages, rather than quarterly, superannuation will need to be calculated, processed and paid as part of every regular pay run, with contributions reaching the employee’s fund within seven business days.
A major change that may catch out small business is the closure of the ATO’s Small Business Superannuation Clearing House (SBSCH). Any business using this clearing house will need to move to an alternative SuperStream-compliant provider. The SBSCH closed to new users on 1 October 2025, and existing users will lose access after 30 June 2026. One option for small business using the ATO clearing house is to utilise an online accounting system, such as Xero. These systems use a clearing house to process superannuation payments for small business.
Utilising an online accounting system will also assist with new reporting requirements for wages and superannuation. From 1 July 2026, employers must report both qualifying earnings and the super liability through Single Touch Payroll (STP). Not all payroll software is currently configured for this automatically, so businesses should confirm with their payroll software provider that their system will be ready.
If contributions are not received by the employee’s super fund within the required timeframe, employers may become liable for an updated superannuation guarantee charge – and the longer the contribution remains unpaid, the larger this charge may become.
These new obligations apply to every employer, regardless of size. There are no exemptions for sole traders with employees, small retail operations, or professional services firms – the rules are the same for all businesses that employ staff.
Early engagement with a bookkeeper, accountant or payroll software provider is recommended well ahead of 1 July 2026. If your business requires assistance, please speak to Diana at The SMSF Accountant and she will be able to assist you with your needs.
Geoff Morris 19 June 2026