TL;DR Big changes are coming (very soon!) to how Australian businesses pay super. From July 2026, super needs to be paid every pay run instead of quarterly. Plus, the free ATO clearing house (SBSCH) is closing. Here’s what’s changing, why it matters and how to get ahead without the stress.

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What is “Payday super?” How does it affect my business? 

Payday super is a new law that requires employers to pay super at the same time as wages (every pay run instead of quarterly).

Right now, most businesses pay super every 3 months. From July 2026, super needs to be paid every time wages are paid – whether that's weekly, fortnightly, or monthly.

Why the change?

Unfortunately, some employers don't always pay super when they should. The government estimates that around 2.8 million Australian workers miss out on about $5.1 billion each year - kinda crazy. 

The government's thinking is that when super is paid more frequently, it's harder for employers to skip payments. Payday super will also help the ATO spot problems faster and make sure employees can see if their super isn't going in. Plus, super gets invested sooner, which means more time for it to grow.

What about the ATO clearing house (SBSCH)?

The Small Business Superannuation Clearing House is closing on June 30, 2026 (the day before Payday super starts). If you're using it, you'll need to find an alternative before then. But you are not alone, around 250,000 businesses also use SBSCH. 

TIP: You’re going to have A LOT going on in June with EOFY. Future you will thank yourself if you start looking now and plan to transition ahead of when you technically need to. 

More frequent super sounds… like it’s going to make cashflow trickier?

This is a concern many small business owners share, especially those operating on tight margins or dealing with clients who pay on 30 or 60-day terms.

Here's something worth knowing: 31% of Australian micro businesses already pay super more frequently than quarterly (according to ATO data from 2021/22). They’re doing it voluntarily.

Here's what some of those businesses tell us:

• Smaller amounts can be easier to manage: Think about it like your mortgage or rent. Would you rather pay smaller amounts monthly, or a big lump at once every three months? 
• Paying more frequently means no scrambling at quarter-end: You're not hunting for three months of super funds all at once or dealing with that "oh no, super's due tomorrow" panic.
• It changes the way we think about super (in a good way): When super becomes part of each pay run, it's just another line item in your routine rather than an occasional big hit to prepare for.
• It builds trust with employees: When super goes in regularly, staff can track their retirement savings more accurately and watch it grow – that builds trust between you and your team.

Long story short, the total you're paying over a year doesn't change – it's just the timing that's different.

Using the ATO clearing house? Here's what you need to know

The SBSCH has served a lot of small businesses well (it's free, after all), but it wasn't built for more frequent payments. The ATO has already closed it to new registrations and will be shutting it down completely on June 30, 2026.

The current workflow is pretty manual: logging into the ATO portal (separate from your payroll system), digging your phone out of your pocket to do the 2FA, copying super amounts across, making a separate bank transfer, and hoping nothing got lost in all that copying and pasting.

If you had to do all that every fortnight instead of quarterly, it’d get old fast.

The good news: You've got until June 2026. But the ATO has recommended businesses start looking at alternatives now rather than being one of 250,000 all trying to sort this out in the same month.

Why is super so complicated anyway?

Look, we get it – running payroll isn't fun and it’s certainly not why you started your business. But it's one of the most important things for your team – and your team is THE most important part of your business.

Super can feel tricky because:

1. The rules keep changing – The Super Guarantee rate (currently 12%) can change each year. Staying on top of that is a huge time-suck, and who has time for that when you're dealing with a million other things?
2. Not all earnings are "superable" – (fyi) "Superable" just means the earnings that super needs to be paid on, which isn’t always consistent. PLUS there are different rules for different types of employees. It's a minefield.
3. Getting details wrong has real consequences – Incorrect fund details or wrong account numbers mean super payments get rejected, which can cause you to miss the deadline, which triggers the Superannuation Guarantee Charge (SGC), which includes the missed payment, interest and admin fees, which can add up.
4. The manual admin is a time sink – Logging into separate systems, copying data between platforms, making separate bank transfers… Every step is another chance for a mistake that needs to be triple checked for.

The businesses that handle this most smoothly are the ones that use tools to make the complicated bits simpler – helping you apply the right rates, calculate the correct amounts and get payments where they need to go.

Take the guesswork (and the stress) out of it.

Why are some businesses preparing now?

You've got time before July 1 2026, so why are businesses acting now?

• Less stress when you're not rushing: Getting set up now means you’ve got time to learn a new system without deadline pressure. You can take your time, ask questions, make mistakes when the stakes are low, and build confidence before the rules change.
• Test-drive more frequent payments: Some businesses are already choosing to pay super every pay run (even though they don't have to yet) to see how it affects their rhythm and iron out any issues before it's mandatory.
• Avoid the crowd: When 250,000 businesses try to switch at once, support queues get long and convenient timeslots fill up. Moving earlier means you get the help you need, when you need it.

Start saving time now, not later: If there's already a simpler way to handle super today, why put it off until 2026? 

There is a simpler way to handle super –

Modern payroll systems include features that make paying super easier than the old clearing house approach. The big difference is that everything happens in one place.

In Xero this feature is called “auto super.” It’s built into payroll so you can review, approve and pay super in the same place you run payroll - helping you meet your super obligations without wanting to throw your laptop out the window.

So instead of…

• Running payroll in one system
• Logging into a separate ATO portal (and finding your phone for 2FA)
• Copying amounts across manually
• Making a separate bank transfer
• And hoping nothing got lost in translation

You get…

• Payroll and super calculated together automatically when you process the payslip
• Review and approve super from the same platform
• One payment that’s sent to all employee funds
• PLUS the confidence that amounts are correct and compliant

Over 200,000 Australian businesses already use Xero’s auto super and 93% say they feel more in control of their payroll because of it. The big difference is that everything happens in one place, which means less time switching between systems, fewer mistakes and more confidence that everything is done right. 

And yes, auto super is included in every Xero Payroll plan with no add-ons or extra costs. It’s also a simple way to make sure your payroll process is ready for upcoming Payday super changes.

What to do next?

• If you're using the ATO clearing house (SBSCH): The ATO recommends starting to explore alternatives now. Giving yourself time to research and switch means less stress later.
• If you're already using a modern payroll software: Check whether your system can handle super payments directly. Many can – you might just need to check a box or turn on the feature.
• If you're hiring your first employee: It’s smart to start with a system that's already built for Payday super. Saves you having to switch in a few months.

Want to see how Xero's auto super works?

Payday super is coming, and the ATO clearing house is closing. Businesses that move early will have less stress and more time to get comfortable before July 2026 arrives.

Right now, we're offering 95% off for your first 6 months – ends March 31st 2026. This gives you full access to auto super from day one - you can automate your calculations, pay super directly from Xero, and get ahead of the changes while you've still got time.

Our customers tell us they've halved the time it takes to complete a pay run, and 96% say Xero payroll helps them stay compliant.

[Get started with 95% off for your first 6 months – ends March 31st 2026!]

Future-you will thank you for sorting this out early.