Is your payroll process still working for your business?

Payday Super started on 1 July 2026. Employers now need to pay super with each pay cycle and ensure the payment reaches the employee’s super fund within seven business days of payday.

For businesses used to paying super quarterly, this is a major change in rhythm. Weekly payroll can mean up to 52 super payment cycles each year. Fortnightly payroll can mean 26. More frequent payments can improve visibility and stop a large quarterly liability building up but they can also create pressure when payroll processes and cash flow have not caught up.

Where businesses are feeling the pressure

The annual super cost may not change significantly for many employers but the timing does. Cash leaves the business sooner and payroll needs attention more often. That can expose a few weak points very quickly.

Cash flow: super can no longer sit in the business until the end of the quarter. Your cash flow forecast needs to reflect the new payment rhythm.
More processing: every pay run can bring another super batch, approval, payment check and reconciliation.
Less time to fix errors: incorrect fund details or employee information can cause payments to be rejected or returned. There is now a much shorter window to correct the issue.
Approval bottlenecks: if one person controls the super authorisation, leave or an unexpected absence can delay the payment.
Payment status: submitting or approving a batch is not the finish line. The contribution must reach the employee’s fund within the required timeframe.

Could monthly payroll reduce the workload?

For some businesses, moving from weekly or fortnightly payroll to monthly payroll may reduce administration. A monthly cycle means 12 standard pay runs each year rather than 26 fortnightly or 52 weekly runs. That can mean fewer super batches, fewer approvals and fewer reconciliations.

Monthly payroll can work well for stable salaried teams with predictable hours and limited overtime, allowances or commissions. It may also make it easier to align payroll with monthly reporting and cash flow planning.

Considering monthly payroll? Watch Xero’s short video for a step-by-step guide to creating a monthly pay frequency and assigning it to your employees.

Before making any changes, confirm that monthly payroll is appropriate for your business and complies with your employees’ awards, agreements and employment terms.

Monthly payroll is not right for every business

Changing the pay cycle is not simply a Xero setting. Awards, enterprise agreements and employment contracts often specify when employees must be paid. Some teams also rely on weekly or fortnightly pay to manage their household expenses.

Before making a change, consider:

What the relevant award, agreement and employment contracts require.
Whether your workforce is salaried or includes casuals, changing rosters, overtime, allowances or commissions.
How timesheet cut-offs, leave requests and payroll adjustments will work.
How and when the change will be communicated to employees.
Whether the transition creates a longer gap between payments and how that will affect your team.
How payroll errors or urgent adjustments will be corrected between monthly runs.

Fair Work reminder

Most awards and agreements set the required pay frequency. Check the rules that apply before changing your payroll cycle.

A quick Payday Super health check

Whether you change your pay frequency or keep it as it is, these checks can reduce the risk of missed or delayed payments:

Are employee super fund and membership details complete and current?
Is your SuperStream-compliant payment method fully set up and working?
Who approves each super batch and who is the backup if that person is unavailable?
Are batches approved promptly after payroll rather than left until the seven-day deadline?
Does someone review the payment status and act quickly on rejected or returned contributions?
Does your short-term cash flow forecast include super leaving the bank account each payday?
Are commissions, salary sacrifice amounts and other relevant payments set up correctly in payroll?

Make Payday Super part of the routine

Payday Super should become part of your normal payroll process rather than a fresh scramble every payday. A small process review now can reduce administration, protect cash flow and lower the risk of late or missed payments.

Is your payroll process working as it should and could monthly payroll make things easier for your business?

Get in touch, our team can help you review the options and put a practical process in place.

At Falanga & Co we combine financial insight with real-world experience to help business owners improve efficiency, strengthen performance and make better decisions.

Information current as at August 2026. For the latest requirements, visit the ATO’s Payday Super information page.

Payday Super is here