Payday Super impacts employers – their payroll systems and cashflow. But SMSFs will also face challenges under the new rules to ensure they remain eligible to receive SG contributions.
Importantly though, the Payday Super rules and the information below is only relevant for SMSFs receiving contributions from employers. If all the members of your SMSF are retired, or the only contributions are from members, you don’t need to read any further.
How does Payday Super work?
Currently, employers are required to ensure SG contributions are received by super funds within 28 days after the end of each quarter. For example, contributions for the March 2026 quarter must be received by the fund by 28 April 2026.
From 1 July 2026, this changes significantly.
Under Payday Super, employers will generally be required to ensure SG contributions are received by the employee’s super fund within seven business days of payday (being the day salary or wages are paid).
So, what should SMSFs be doing now to prepare for Payday Super?
How Payday Super affects SMSF contributions
Seven business days is a very tight window for a super contribution to both leave the employer’s bank account and be received by your SMSF, particularly if the contribution is going via a clearing house. Note, SG contributions to SMSFs by related party employers will also need to meet the seven business day timeframe.
From 1 July 2026, many employers are expected to pay their SG contributions on the same day as they pay wages (if they don’t already). This will give them a head start on ensuring contributions are received by funds on time. But there are things SMSFs can do to help too.
Ensure the SMSF has an NPP enabled bank account
From 1 July 2026, all super funds receiving employer contributions must have an NPP enabled bank account. This includes SMSFs, other than where the contributions are from related party employers.
NPP stands for New Payments Platform. Whilst you might not be familiar with the term NPP, you have probably heard of Osko or PayID, particularly in your personal banking. A bank account which can make or receive a payment via Osko, PayID or more recently, PayTo is NPP enabled.
It won’t be compulsory for employers to pay via Osko etc (ie they could still pay via ETF or BPAY) if they chose to. But using one of these new methods will mean their contributions are received in real time, provided the fund’s bank account is also NPP enabled.
Whilst most major banks already offer NPP enabled accounts, if your SMSF receives contributions from employers, it’s important to check the fund’s bank account to ensure it is NPP enabled. This is particularly relevant if employer contributions are currently being paid to the cash account of a wrap or platform provider.
If you decide to open a new bank account for your fund, details of that account must be given to the ATO. We can update the ATO for you if your fund is administered by Heffron.
Ensure your SMSF’s software will support Member Verification Requests
Payday Super is not just about when a contribution is received – it is also about whether the fund can accept and allocate it.
From 1 July 2026, employers must use the ATO’s new Member Verification Request (MVR) process before making a super contribution to a fund for an employee for the first time, provided their software supports this functionality.
The MVR allows employers to confirm whether a fund can accept a contribution for a particular employee.
Your SMSF must respond to a MVR if it receives one. Heffron uses Class software which means the process will be fully automated and no interaction will be needed by us or you. Accountants using BGL and SuperMate will also have access to the same automation.
Why Payday Super makes on-time lodgement critical
Timely lodgement of your SMSF annual return becomes even more critical under Payday Super.
If an SMSF’s annual return is more than two weeks overdue, its regulation details are removed from a special ATO register called Super Fund Lookup. An employer who tries contributing to an SMSF where its regulation details have been removed will generally see that payment rejected. This means they will need to pay contributions for that employee to another fund, either a fund of the employee’s choosing (but not the SMSF) or the employer’s default fund.
There are some limited situations where employers are allowed up to 20 business days for receipt of contributions, including where an SMSF’s regulation details have been removed. Even so, 20 business days is still a narrow window.
This means it will be important for SMSFs receiving SG contributions to ensure their 2025 annual return is lodged on time (including any allowed lodgement extensions). If it’s not going to be possible to lodge on time, then it may be appropriate for the employee to start the process of opening another super account in advance of 1 July 2026.
Be prepared for excess concessional contributions
Transitional rules mean that some employers who would normally pay their SG contributions quarterly will choose to bring forward their usual July 2026 payment (ie for the June 2026 quarter) to before 30 June 2026. This could mean five quarters of contributions in 2025/26 pushing an employee over the standard concessional cap.
On the flipside, a quarterly contribution in July 2026 plus payday contributions throughout 2026/27 could cause an employee to exceed the standard concessional cap for that year.
Whilst the Government has indicated an intention to introduce amendments to ensure individuals do not exceed their concessional cap as a result of the introduction of Payday Super, current commentary refers only to excesses for 2026/27.
If you are likely to have concessional contributions of more than the standard cap in 2025/26 or 2026/27 (due to a change in the timing of when your employer makes contributions for you), there may be things you can do to minimise the impact. Have a chat to us, your accountant or adviser.
Payday Super FAQs
When does Payday Super start?
Payday Super applies from 1 July 2026 to SG contributions paid by employers.
Does Payday Super apply to SMSFs?
Payday Super matters for SMSFs that receive employer contributions, including from related party employers.
Do SMSFs need an NPP‑enabled bank account for Payday Super?
From 1 July 2026, SMSFs receiving employer contributions (other than from related party employers) must have an NPP‑enabled bank account to help meet the new timeframes.
What happens if an SMSF can’t receive contributions on time?
Contributions may fail verification or be rejected, potentially forcing employers to pay into another fund.
The introduction of Payday Super is not just a problem for employers. SMSFs and their members also have a role to play in ensuring a smooth transition.
You may also be interested in...
– What happens if you exceed the contributions limits?
– Excess Concessional Contributions & a $nil Non-Concessional Cap | Heffron
– Unique SMSF strategies and opportunities | Heffron - Everything SMSF
