Payday super is coming: what non-profits need to know

From 1 July 2026, new ‘Payday Super’ laws will come into effect, mandating that employees are paid the superannuation guarantee at the same time as their wages.

This will improve the timeliness of superpayments, replacing the current minimum quarterly system. Whilst it gives employees greater security of their super, this change will require tighter payroll processes for NFPs, to ensure compliance.

How will this impact your operations?

• Non-profits will need to align payroll and super very closely and ensure that processes are ready for more frequent super payments
• This means approving super on the same day as payroll. Super approval and submission will need to happen as part of the payroll-day workflow.
• Organisations that have daily banking limits will need to review these settings, to ensure they don’t delay or prevent combined payroll and super payments
• NFPs will also need to keep an eye on cashflow, and set aside more funds on payroll days

How is Purpose managing the change?

For clients where we manage payroll: We are already planning the changes needed to ensure your compliance. Your Client Manager will discuss with you what this means for your specific context and we’ll work with you to implement the new processes.

If Purpose doesn’t manage your payroll: we recommend planning ahead. Employers don’t need to wait until 1 July to start paying super on payday - you can start preparing now. The ATO website provides some good info, as do our partners in payroll:

• This article from Xero, and
• This article from Employment Hero

Contribution cap considerations

Employees nearing the concessional cap ($30,000 in FY26), including those salary sacrificing super, should be mindful of timing changes. Contributions relating to late FY26 periods (i.e. the June 26 period if processed monthly; or April - June 26 period if processed quarterly) may be processed in FY27. This potentially pushes totals over the cap once Payday Super begins.

If this has the potential to impact your team, we recommend chatting with us (if Purpose manages your payroll). Alternatively, reach out to your in-house payroll officer, to understand timing and adjust contributions where needed.