From 1 July, you have 7 days after every pay run to get super into your employees' funds. Most tradies are still set up the old way. Here's how to fix that before the ATO comes knocking.
Right now, most trade employers pay super quarterly — it's a pain but it's manageable. From 1 July 2026, that changes completely. Under Payday Super, super has to land in your employees' super funds within 7 days of every single pay run.
Miss the window and the ATO can hit you with the Super Guarantee Charge — that's the unpaid super, plus interest, plus an administration levy. The charge isn't tax-deductible either, so it costs you more than just paying on time would have.
The other thing to know: the Small Business Clearing House (SBSCH) closes on 30 June 2026. If that's your current super system, you need a replacement in place before then — not after.
Here's the honest version: quarterly super has been a quiet cash flow buffer for a lot of trade businesses. You collect it through the year and pay it four times. That buffer disappears from July 1.
Weekly or fortnightly payroll means super hits your bank account every pay cycle. If you're running tight margins on a job — and most tradies are — you need your cash flow forecasting to account for this. Businesses that don't plan ahead are going to find themselves short.
SBSCH closes permanently. Every trade employer needs a compliant super system in place before this date.
Work through these in order. Most of them take under 30 minutes if you've got your payroll login handy.
Pull your payroll list. Include casuals, part-timers, and any workers you might have treated as contractors. If they earn more than $450 a month (actually — the threshold was scrapped, so anyone you pay regularly), they may qualify. When in doubt, check with your accountant or the ATO's SG eligibility tool.
Xero, MYOB, and QuickBooks all support Payday Super — but you need to be on a current plan. Log into your payroll software and check. If you're still running spreadsheets or using SBSCH as your primary tool, you need to migrate now. Your accountant can help you pick the right setup for your business size.
The whole point of Payday Super is that it's automated. In Xero, go to Payroll Settings and turn on the super auto-payment toggle. MYOB and QuickBooks have equivalent settings. This is what ensures the 7-day window is always met — don't rely on remembering to do it manually.
The Super Guarantee rate moves to 12% on 1 July 2026. Check your payroll software now — most will update automatically, but verify it's set correctly before your first July pay run. An underpayment, even a small one, triggers the SGC penalty.
Your payroll system needs each employee's fund name and member number to process payments. For new employees, super fund details come from their Super Choice form (which you're required to provide on day one). For existing employees, check your records are complete. Missing details mean the payment can't go out — and the clock is still ticking on the 7 days.
Super is no longer a quarterly lump sum — it's a fortnightly (or weekly) outgoing. Update your cash flow forecast to reflect this. If you invoice in arrears and pay staff weekly, there's a timing mismatch you need to plan around. This is the single biggest operational change Payday Super creates for small trade businesses.
Run a test pay cycle in your payroll software before 30 June to make sure the super payment flows correctly. Check the bank account the payment comes from has sufficient funds on payday. Confirm the payment lands in the right fund within the 7-day window. Finding out it doesn't work on 2 July is too late.
The Super Guarantee Charge isn't just a fine — it's a pain in the neck to deal with. You have to self-report to the ATO using an SGC statement, pay the unpaid super plus 10% interest per year, plus a $20 per employee per quarter administration levy. And none of it is tax-deductible.
The ATO receives data directly from super funds. From 1 July, they'll be able to see in near real-time whether payments are arriving within the 7-day window. This isn't like the old quarterly system where a late payment could slip through. The visibility is there from day one.
Tradewise helps trade business owners set up the systems so compliance runs on autopilot. Book a free 20-minute call and we'll walk through your current setup.
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