Payday Super: What your practice needs to know
Wednesday, 14 January 2026
Major changes to superannuation payment rules are coming on 1 July 2026 that will affect how your medical practice manages staff payments, introducing what's known as "payday super."
Currently, medical practices must pay their staff members’ 12% superannuation contributions on ordinary time earnings quarterly, by the 28th day of the month following each quarter.
From 1 July 2026, all Australian businesses will need to pay super at the same time you pay wages and salaries. The super contributions must reach your employees’ nominated super funds within seven business days of payday. This is a fundamental shift. If you pay staff fortnightly, your practice will need to make super payments fortnightly. If you pay weekly, super payments must be made weekly too.
The government aims to ensure employees receive their super entitlements more quickly and reduce amounts of unpaid super. When super is paid more frequently, it can compound over time, potentially adding thousands to employees' retirement savings. The change also makes it easier for the Australian Taxation Office (ATO) to identify businesses that are not meeting their super obligations.
For most medical practices, this change will mean adjusting your payroll processes and cash flow planning. Your practice will need to have funds available to cover super contributions every pay cycle, rather than quarterly. This affects budgeting and working capital management.
Key steps to prepare your practice for the introduction of payday super will include:
- Upgrade your payroll system - Ensure your software can process super payments with each pay run rather than quarterly
- Review your pay codes - Confirm super is being calculated correctly on all relevant entitlements for employees, and for any independent contractors engaged mainly for their personal skills and labour
- Check employee records - Make sure you have current super choice forms and tax file number declarations to avoid processing delays
- Adjust cash flow planning - Budget for more frequent super payments from July 2026.
The ATO's website has detailed information to assist businesses with payday super.
With just months until the changes take effect, now is the time to review your systems and ensure your practice is ready for payday super.
We can help you
To discuss these or other workplace changes, contact a member of the Employment & Workplace team at Avant Law. Alternatively, call 1800 867 113 or click here to organise a confidential discussion at a time that suits you.
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About the author
Stephen Schoninger is a Partner and Head of the Employment & Workplace law practice at Avant Law, based in Sydney. Stephen has over 20 years’ experience practising exclusively in employment, industrial relations and discrimination laws. Stephen is called on for his ability to plainly advise on and pragmatically apply legal principles to manage and resolve complex issues arising in the workplace. Stephen advises employers and employees in the private and public sectors on all areas of workplace law and is an experienced litigator of work-related claims. Stephen also conducts workplace investigations and delivers workplace compliance training. He regularly presents seminars on topical employment and workplace law issues.
The information in this article does not constitute legal advice or other professional advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of this content. The information in this article is current to 15 January 2026. Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners employed by Avant Law Pty Limited are members of the scheme.