Read time: 5 min
Published Monday, 6th July 2026
If you employ staff, or you are considering taking on employees, three payroll matters need your attention in July 2026. Payday Super has changed when you pay superannuation. The Fair Work Commission has increased minimum wages. And in the middle of both, your final quarterly super payment for the June 2026 quarter is still due. Managing all three together is where employers are most likely to slip, so it is worth understanding each one clearly.
Payday Super: superannuation is now paid on payday
Until 30 June 2026, employers could pay Superannuation Guarantee (SG) contributions quarterly, within 28 days of the end of each quarter. From 1 July 2026, that quarterly system no longer applies to new earnings. Superannuation must now be paid at the same time as wages, and the contribution must reach each employee’s super fund within seven business days of payday.
The Superannuation Guarantee rate remains at 12%. From 1 July 2026, it is calculated on qualifying earnings, a new term that broadly aligns with ordinary time earnings and brings in certain other payments. The rate has not changed. What has changed is the timing and the frequency.
For businesses that previously held superannuation and paid it quarterly, cash flow will need to be planned around more frequent payments, and payroll software will need to calculate and process super with each pay run. If you previously used the Small Business Superannuation Clearing House, note that this service has now closed, so an alternative payment method is required.
Do not overlook the June 2026 quarter
This is the point most likely to be missed. The move to Payday Super does not remove your obligation for the final quarter under the old system. Superannuation accrued for the quarter covering 1 April to 30 June 2026 is still due, and must reach your employees’ super funds by 28 July 2026.
Two risks arise during this overlap. The first is a timing and systems risk. If you began paying super on payday early, and your payroll processes are not tracking both obligations separately, payments can be misapplied or, in some cases, doubled up. Between 1 July and 28 July 2026, contributions are generally applied to any outstanding June quarter amount first, and then to your Payday Super obligations.
The second risk carries a real financial cost this year. The arrangement that previously allowed a late June quarter payment to reduce the Superannuation Guarantee Charge is not available for the June 2026 quarter. This means an employer who misses the 28 July deadline and then pays the amount late into the fund may still be liable for the full charge payable to the Australian Taxation Office (ATO), resulting in effectively paying twice, with neither amount being deductible. Paying the June quarter correctly and on time is the simplest way to avoid this outcome.
What happens if superannuation is paid late under Payday Super
If super is not received by the fund within the required timeframe, the Superannuation Guarantee Charge applies. This charge is assessed by the ATO and includes the shortfall along with interest and an administrative component.
There is reassurance for the first year. The ATO has confirmed a risk-based compliance approach for the period from 1 July 2026 to 30 June 2027. During this first year, it has indicated it will take a supportive approach toward employers making a genuine effort to comply and correcting minor issues promptly, while directing firmer attention at those not attempting to pay superannuation on payday at all. There is no formal exemption for small businesses, so all employers need to be working toward compliance. If you are unsure whether your payroll is set up correctly, the sensible step is to check now and address anything early, while issues remain simple to resolve.
The 2026 minimum wage increase
Separately from superannuation, the Fair Work Commission has confirmed a 4.75% increase to minimum wages. The new National Minimum Wage is $26.44 per hour for adult employees. For casual employees who are award-free or agreement-free, the minimum is $33.05 per hour once the 25% casual loading is applied. These rates apply from the first full pay period starting on or after 1 July 2026, rather than from 1 July itself. For example, if your weekly pay cycle begins on a Monday, the new rates apply from the first Monday on or after 1 July, not partway through an existing pay period.
If your employees are covered by a Modern Award, their minimum pay depends on their specific classification under that award, and may differ from the National Minimum Wage figures above. The percentage increase does not apply uniformly to every classification, because some of the lowest classifications are subject to additional structural adjustments. The safest approach is to confirm the correct rate for each employee against the relevant award rather than applying a single percentage across the board.
What employers should do now?
Confirm that your payroll software calculates and pays superannuation with each pay run, and that payments reach funds within seven business days. Make sure your June 2026 quarter super is paid in full and received by 28 July, and kept separate from your new Payday Super payments. Review your cash flow so that both the June quarter and more frequent super payments are accounted for during July. Check the correct classification and pay rate for each employee, and apply the new wage rates from your first July pay run. If you have not yet started paying superannuation on payday, begin now.
If any of this feels unclear, or you would like a second set of eyes on your payroll setup, speaking with your accountant is the simplest way to confirm you are on the right track.
How Factor1 can help
The Factor1 team works with business owners across Melbourne and regional Victoria to keep payroll and superannuation running smoothly. If you would like practical support reviewing your setup for Payday Super, confirming your June quarter is handled correctly, or checking your employees are on the right rates, we would be glad to help. Please get in touch with our team or speak with your accountant.
Please note: For general information only. Individual circumstances vary, and the way these changes apply will depend on your specific situation and the awards that cover your employees. Please seek advice tailored to your business before making decisions.