From 1 July 2026 employers will need to pay their employees’ superannuation guarantee at the same time as wages, not quarterly.
It’s called payday super, and it’s designed to help workers grow their retirement savings faster. For SMEs, it means rethinking how you manage cash flow and payroll.
It’s called payday super, and it’s designed to help workers grow their retirement savings faster. For SMEs, it means rethinking how you manage cash flow and payroll.
Why This Matters
If you’re used to paying super every quarter, this shift could feel like a squeeze. Suddenly, those extra weeks of breathing room disappear. As Banjo Loans CEO Guy Callaghan explains:
“The new legislation forces businesses to take even more control of their finances. They will need to be on top of their cash flow situation at all times to ensure they can continually pay super in line with salary and wage cycles rather than quarterly, as is the case now.”
For businesses with seasonal or uneven income, this could be a real challenge. And with consumer confidence down and project delays common, many SMEs are already feeling the pinch.
“The new legislation forces businesses to take even more control of their finances. They will need to be on top of their cash flow situation at all times to ensure they can continually pay super in line with salary and wage cycles rather than quarterly, as is the case now.”
For businesses with seasonal or uneven income, this could be a real challenge. And with consumer confidence down and project delays common, many SMEs are already feeling the pinch.
What Happens If You’re Not Ready?
The penalties for late payments are tough, and the administrative burden is real. Banjo Loans Chief Legal Officer Matthew Boglis warns:
“This legislation represents a fundamental shift in the way that SMEs manage their payroll, stiffens penalties for non-compliance and exposes businesses to higher administrative burden. SME leaders who are not proactive face substantial compliance and cash flow risks, potentially endangering the future of their business.”
“This legislation represents a fundamental shift in the way that SMEs manage their payroll, stiffens penalties for non-compliance and exposes businesses to higher administrative burden. SME leaders who are not proactive face substantial compliance and cash flow risks, potentially endangering the future of their business.”
What Support Is Available?
The Australian Taxation Office (ATO) has flagged that it will take a light-touch compliance approach during the transition. Employers genuinely trying to do the right thing, or those whose payments fall late through no fault of their own, will not face harsh penalties up to 30 June 2027. Businesses will be assessed as low, medium, or high risk, with the least-risky employers exempt from compliance action during this period.
For official guidance, visit the ATO’s resource hub.
For official guidance, visit the ATO’s resource hub.
How to Prepare
Here are some practical steps to get ahead of the change:
- Review your cash flow now: Understand your revenue and expense timing.
- Forecast the impact: Use Banjo’s Cashflow Forecasting Tool to get a clearer picture of your
future cash flow. - Get expert help: Talk to your accountant or bookkeeper about updating payroll systems.
- Plan for flexibility: If you need a buffer, Banjo Loans offers Express Business Loans from $20,000 to $500,000 to help bridge short-term gaps.
Final Tip
The earlier you plan, the smoother the transition will be. As Guy says:
“By preparing well ahead of the changeover date and managing cash flow in line with the new super payment terms, SMEs can position themselves for stability.”
Banjo Loans is here to help you stay in control, so you can focus on growing your business, not stressing about compliance
“By preparing well ahead of the changeover date and managing cash flow in line with the new super payment terms, SMEs can position themselves for stability.”
Banjo Loans is here to help you stay in control, so you can focus on growing your business, not stressing about compliance
