The federal government has officially passed the Treasury Laws Amendment (Payday Superannuation) Bill 2025, marking one of the biggest superannuation reforms in recent years.
From 1 July 2026, all Australian employers, including not-for-profit organisations, must pay superannuation at the same time as wages, instead of quarterly.
For not-for-profits already balancing tight budgets, grant cycles, and compliance obligations, this change will have important operational and cash-flow impacts. Here’s what you need to know and how to get ready.
What Is Payday Superannuation?
Under the new law, employers must ensure that super contributions reach employees’ super funds within seven business days of each pay run.
Previously, super could be paid up to a month after the end of each quarter, often long after employees received their wages. Moving to a payday model ensures contributions are made in real time, increasing transparency and improving retirement outcomes for workers.
Why the Change Matters
Unpaid or late super is a widespread issue, the ATO estimates Australian workers miss out on $5.7 billion in super each year. This is especially common among casual, part-time, or grant-funded staff common in the not-for-profit sector.
The new rules aim to:
- Make super payments easier to track and verify.
- Reduce the risk of underpayments and compliance penalties.
- Help employees grow their super sooner through more frequent contributions.
For NFPs, the benefits are clear — but so are the administrative challenges.
How It Affects Not-for-Profit Organisations
Many NFPs operate on lean budgets and depend on funding installments. The move to payday super will require careful planning and some system updates:
- Cash Flow Management – Quarterly super payments offered flexibility. Under payday super, contributions will need to be remitted every pay cycle, so it’s vital to budget for more regular outflows.
- Payroll and Software Readiness – Check that your payroll software (or your outsourced payroll provider) supports payday super functionality. Ensure that contributions can be processed and received by funds within seven business days of each pay run.
- Governance and Oversight – Boards and finance committees should include payday super compliance as part of their financial governance and reporting processes.
- Contractors and Casual Staff – If your organisation engages casuals or contractors who fall under the Superannuation Guarantee (SG), ensure they are correctly captured in your payroll system and included in the new cycle.
When Does It Start?
The mandatory start date is 1 July 2026, giving employers over a year to prepare. The ATO has indicated it will take a “supportive” approach during the transition, provided employers demonstrate genuine efforts to comply.
However, early adoption is recommended, both to test your systems and to spread out the cash-flow adjustment period.
How to Prepare Now
Hopscotch Accounting recommends that all NFPs start planning for payday super by taking these steps:
- Review Your Payroll Process: Confirm your current pay cycle and super payment frequency.
- Talk to Your Accountant or Payroll Provider: Ensure your systems can automatically remit super within the new timeframe.
- Forecast Cash Flow: Adjust your budgets to reflect more frequent payments.
- Verify Super Fund Details: Check that employee super details are accurate and contributions won’t bounce.
- Update Internal Policies: Communicate the change to your finance and HR teams, and include it in your compliance calendar.
Final Thoughts
While payday super introduces new administrative requirements, it’s ultimately a step forward in fairness and financial wellbeing for Australian workers.
For not-for-profits, early preparation is the key to a smooth transition. With the right systems and support in place, your organisation can meet its new obligations confidently and on time.
Need help getting ready for payday super?
Hopscotch Accounting can help you assess your readiness, plan cash flow, and update your payroll systems before 1 July 2026. We specialise in helping not-for-profit organisations across Sydney stay compliant and financially confident through changing regulations.
Contact our team today to book a consultation or discuss how these changes affect your not-for-profit organisation.
Call us on: (02) 8525 3500 or send the team an email.
