Payday Super
Learn what Payday Super means for your business and how Westpac can help
What is Payday Super?
Payday Super is an Australian Government reform that changes when superannuation must be paid. From 1 July 2026, employers are required to pay Super Guarantee contributions at the same time as salary and wages, with funds received within seven business days (some exceptions apply, such as when onboarding a new employee).
From 1 July 2026, the Government’s Small Business Superannuation Clearing House (SBSCH) will close, requiring small businesses that currently use this service to move to an alternative solution.
More information on the ATO website can be found here.
Steps businesses should take to prepare for Payday Super:
Confirm payroll systems can support Payday Super
Review Cashflow impacts
Prepare systems ahead of time
Special offer: $0 establishment fee with a Business Overdraft*
*New limit or Top-up of up to $1m.How Westpac can support your Business
Manage and streamline your super contributions
Westpac’s QuickSuper is leading the way as a major bank clearing house^ which complies with Payday Super requirements for a clearing house. From March 2026 it offers real-time payments and other features, including:
- Real-time payments – Supports real-time super contributions using PaylD, allowing employers to send payments that settle in minutes rather than days.
- Automated validation – if a payment is rejected by a fund, returns are processed in real time.
- 24/7 processing – no overnight delays or business day cut offs.
From 1 July additional features will allow employers to confirm a member’s existence, providing greater confidence when making a first super contribution.
Managing the Impact on your Business Cash Flow
Superannuation post 1 July 2026 is paid with each employee's pay run (weekly, fortnightly or monthly), instead of monthly or quarterly as some businesses currently do.
This means businesses need to have funds available at each payroll, rather than later. For some, this can create timing gaps between incoming cash and payroll obligations.
Having access to flexible cashflow support can help manage these short term gaps between income and payroll obligations.
How a business overdraft may help
A business overdraft is a flexible line of credit linked to your transaction account, giving you access to extra funds when your cash inflows and outflows don’t line up. It can help manage day to day cashflow, especially when you need to cover payroll and super at the same time.
How invoice finance may help
An invoice finance facility lets you unlock up to 85% of the value of your unpaid invoices within minutes1, with the remaining balances released to you once your customers pay2. Our invoice finance platform gives you access to a self service portal available 24/7, including optional syncing with Xero for seamless invoice management. It’s a smart way to bridge the gap between issuing an invoice and receiving payment, helping you manage cash flow for your business especially when you need to cover payroll and super at the same time.
Payday Super Example
From 1 July 2026, employers must pay super at 12% of wages with each payroll. This shifts super from a quarterly obligation to a regular cash outflow, reducing the cash buffer businesses can hold and increasing the need to manage timing between incoming and outgoing payments.
For a business with 2 employees earning $100,000 each on a weekly payroll, super remains $24,000 annually, but shifts from $6,000 paid quarterly to $460 paid weekly, reducing cash held between payments by around $5,500 each quarter and limiting day to day flexibility.
To estimate your Payday Super obligations, you can use this calculator.
Frequently Asked Questions
The government reforms aim to strengthen the superannuation system by ensuring employees’ super is paid sooner, improving transparency and reducing the risk of unpaid super and helping to improve retirement outcomes for Australian workers. For businesses, the changes will support more consistent payroll practices. However, those that currently pay super quarterly may need to plan and prepare for the transition to more frequent payments.
A clearing house streamlines the superannuation contributions you are required to make to your employees into a single electronic real time payment for all staff. It acts as an intermediary, automatically distributing funds to individual employees' funds making it easier and simpler to process payments and remain compliant.
Failure to comply with the new legislation may result in significant ATO penalties.
More information on the ATO website can be found here.
Contact your relationship manager, submit an enquiry or call 1300 368 098 to discuss the real time solutions best suited to your business (8am - 8pm, Monday – Friday).
Things you should know
*Terms and Conditions for the $0 Establishment Fee Waiver Offer on Business Overdrafts
- We will waive the establishment fee for eligible new Business Overdrafts of up to $1 million, or for a limit increase of up to $1 million on an existing Business Overdraft.
Eligibility and timing
- Applications must be received and approved between 07 April 2026 and 30 September 2026 and settled within 90 days of approval.
- For Business Overdrafts, you must also have an eligible Westpac Business Transaction Account.
Exclusions
- The offer is not available for any other applications, including those submitted through third parties or brokers.
- Temporary Overdrafts are not included.
- We may withhold the offer where an application is reasonably determined by us to be fraudulent or materially misleading.
Approval
- All applications are subject to approval. Standard terms, conditions, fees, charges, and credit criteria apply.
How the fee waiver works
- We will waive the establishment fee or refund it within 60 days of settlement.
- If you believe an establishment fee has been charged in error, please contact us.
- Establishment fees may still apply to other products you request as part of your application.
- This offer cannot be used in conjunction with any other offer. We may vary or withdraw this offer at any time.
^A clearing house streamlines the superannuation contributions you are required to make to your employees into a single electronic real time payment for all staff. It acts as an intermediary, automatically distributing funds to individual employees' funds making it easier and simpler to process payments and remain compliant.
Invoice Finance things you should know:
1. Access to funds is subject to system availability and between 7am–10pm, Monday to Friday. Excludes weekends and public holidays. Application to funds availability may vary.
2. You will receive the remaining value of your invoices once they are paid by your customers, minus any fees and charges.