Let Benkorp break it down simply.
Payday Super means employers must pay their employees’ superannuation at the same time as wages are paid, instead of paying it monthly or quarterly.
From 1 July 2026:
- Superannuation must be processed each pay run;
- Superannuation payments must reach employee super funds within seven days; and
- The Small Business Superannuation Clearing House (SBSCH) will close, employers will no longer be able to make payments through the ATO anymore for super payments.
The government reform aims to reduce unpaid super, improve transparency, and ensure employees receive their retirement contributions sooner.
For organisations, it may require adjustments to payroll processes and cashflow planning.
While this sounds like a big shift, the right support and payroll system will make the transition straightforward.
The Good News for Xero Payroll Users
If you are already using Xero Payroll and its automated superannuation payment functions, there is very little you need to change. The system is designed to handle super alongside your regular payroll processing.
If you are not currently using Xero’s “Pay Super” functionality, now is the ideal time to switch across.
Benkorp can assist with:
- Reviewing your current payroll setup
- Activating and configuring Xero’s superannuation features
- Ensuring your organisation remains compliant ahead of 1 July 2026
Thinking About Moving to Xero?
If your organisation employs staff and you want a streamlined, compliant solution for Payday Super, now may be the right time to implement Xero Software.
Our team can complete the setup and ensure everything is configured correctly from the start.
For support or enquiries, please contact our friendly team at Benkorp:
📧 connect@benkorp.com