Your accounting software is ready for Payday Super if it can pay super with each pay run, report qualifying earnings through Single Touch Payroll and flag payment errors early. If it can’t do all three, you have a compliance gap.
Payday Super has applied since 1 July 2026. Super is no longer a quarterly job. It is part of every pay run. This guide covers what changed, what to check in your software and how to fix gaps before they cost you.
What Is Payday Super and What Has Changed?
Payday Super means you pay super with each payday, not once a quarter. It started on 1 July 2026 and applies to every Australian employer.
Super on every payday
Contributions must reach your employee’s fund within seven business days of payday. Miss that window and the superannuation guarantee charge may apply.
Qualifying earnings
Super is now based on qualifying earnings, which replaces ordinary time earnings. Your pay codes need to map correctly. Your software also has to report these amounts through Single Touch Payroll.
The ATO clearing house has closed
The ATO’s Small Business Superannuation Clearing House has closed permanently. If you used it, you need payroll software with built-in super payments or a commercial clearing house.
Cash flow
The quarterly float is gone. Super now leaves your account every pay cycle, so you need to plan for it. Build it into your cash flow forecast and set the money aside each pay run. That way, payments never come as a shock.
What Should Accounting Software Do for Payday Super?
Good payroll and accounting software should handle five things. If yours misses any of them, talk to your provider or your accountant.
Report qualifying earnings through STP
Your software must calculate and report qualifying earnings correctly. Check that your pay items are set up the right way. Wrong mapping means wrong super.
Pay super with each pay run
The best setups pay super at the same time as wages, through built-in payments or an integrated clearing house. If you still export files and pay super by hand, you’ll fall behind.
Handle rejected payments
Super funds sometimes reject payments because of wrong member details. Your software should show the error clearly, so you can fix it inside the seven-day window.
Keep employee details clean
Check tax file numbers, fund details and member IDs. The ATO advises employers to fix any errors they’re already receiving. Small data mistakes turn into late payments.
Show your cash flow
You should be able to see your super liability for each pay run. Better visibility means fewer surprises and easier budgeting.
How Do the Main Accounting Platforms Handle Payday Super?
Most major Australian platforms support Payday Super in some form, but they differ in how much is automatic. Xero, MYOB, QuickBooks, Sage and Reckon all serve small businesses here.
Features and pricing change often, so confirm the current details with your provider. These questions will help:
- Does it report qualifying earnings through Single Touch Payroll?
- Does it pay super with each pay run, or do you need a separate clearing house?
- How does it show rejected payments?
- Is payroll included in your plan, or an add-on?
Timesheet and rostering tools like Deputy feed hours into payroll. Check that the connection passes data across correctly.
How Can You Check Your Software Is Ready?
Run a test pay run and compare the super amounts against what you expect. It takes ten minutes and shows problems fast. Then work through this list.
- Check that the super amount matches your qualifying earnings, not just ordinary time earnings
- Confirm how super is paid. Is it built in, or do you use a separate clearing house?
- Review every employee record for missing or wrong fund details
- Ask your software provider to confirm Payday Super support in writing
- Book a review with your accountant if anything looks off
If you find gaps, fix them now. Each pay run you delay is another chance to pay late.
What Mistakes Should You Avoid?
The biggest mistake is assuming your software updated itself. Here are the others we see most.
- Leaving old pay codes unmapped
- Ignoring employee detail errors until a payment fails
- Still relying on the closed ATO clearing house
- Having no cash flow plan for more frequent payments
Waiting for the ATO to contact you
How Can Collab Accounting Help with Payday Super?
We can review your software setup, fix your payroll configuration and move you to a platform that suits your business. We work with Xero, QuickBooks, MYOB, Sage, Reckon, LodgeiT and more.
Collab Accounting is a Xero Practice Agent and QuickBooks Practice Agent. We are registered with the Tax Practitioners Board, an ASIC Registered Agent, and ISO 27001 and 9001 certified. We work with small businesses across Australia. Call us on +61 468 230 549 or book a free consultation. For official details, see the ATO’s Payday Super page at ato.gov.au/paydaysuper.
FAQs
Do I need new accounting software for Payday Super?
Not always. You need software that pays super with each pay run and reports qualifying earnings through Single Touch Payroll. Check with your provider, or ask us to review your setup.
What replaces the ATO Small Business Superannuation Clearing House?
Payroll software with built-in super payments, or a commercial clearing house. The ATO service has closed, so businesses that relied on it need one of these options.
What happens if I pay super late?
The superannuation guarantee charge may apply if super does not reach the fund within seven business days of payday. Extra costs can follow. Check the ATO website for the current rules.
