Payday Super is fast approaching, is your business ready?
April 16, 2026From 1 July 2026, the Federal Government is introducing Payday Super, requiring Super to be paid at the same time as each pay run, rather than quarterly.
If you are using Xero Payroll, this change will be easier to manage, but it is still important to ensure your setup and processes are correct to avoid late payments, penalties, and loss of tax deductions.
We recommend reviewing your Xero setup now and adopting a consistent process ahead of the changes.
Please see our checklist below:
Payday Super – Xero user checklist
1. Review your Xero payroll setup
-
Ensure all employees are set up with the correct Super fund details
-
Check Super rates and categories are accurate
-
Confirm STP reporting is active and up to date
2. Use Xero Auto Super where possible
-
Set up Xero Auto Super to streamline payments
-
Link your business bank account for direct processing
-
This helps reduce the risk of missed or late payments
3. Align Super with each pay run
-
When processing payroll in Xero, ensure Super is included and ready to lodge immediately
-
Avoid batching Super quarterly, move to a per pay cycle process
4. Allow for processing time
-
Even with Xero Auto Super, payments can take a few days to clear
-
Process Super on the same day as payroll to stay within the 7-day requirement
5. Manage cash flow
-
Ensure funds are available in your bank account at each pay run
-
Consider setting up a separate account or allocation for Super liabilities
6. Automate and set reminders
-
Use Xero reminders or calendar alerts for payroll days
-
Build a consistent routine to avoid delays
7. Test your process early
-
Run a trial of paying Super each pay cycle before 1 July 2026
-
Identify any issues with timing, cash flow, or setup
If you would like us to review your Xero file or payroll settings, we are happy to assist, so please reach out.
You can view information from the ATO “About Payday Super” here.
Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting, taxation and business development needs.
Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
