With less than three months until the biggest change to super guarantee (SG) since its introduction, advisers should be actively preparing their SMSF clients for payday super, which commences on 1 July 2026.
Whilst much of the commentary has focused on employers, payroll systems and cashflow, SMSFs will also face challenges under the new rules to ensure they remain eligible to receive SG contributions from employers.
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 help employers comply with payday super?
Seven business days is a very tight window for a super contribution to both leave the employer’s bank account and be received by the SMSF, particularly if the contribution is going via a clearing house. And unlike the SuperStream rules, 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.
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, it’s important any impacted SMSFs check their accounts, particularly if employer contributions are currently being paid to the cash accounts of wrap or platform providers. The details of any new bank accounts must be given to the ATO.
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 - a bit like the SMSF verification service for rollovers.
Check with your SMSF software provider whether it will be able to respond to an MVR. BGL, Class & SuperMate are all on track to do so, with the process fully automated and no interaction required by accountants.
Timely lodgement of SMSF annual returns 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 Super Fund Lookup on the first business day of the following month. 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.
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 5 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 your client is likely to have concessional contributions of more than the standard cap in 2025/26 (due to the transition from the old to the new rules), but not 2026/27, it may be appropriate to consider a deferred allocation strategy for all or part of any June 2026 contributions made to their SMSF.
In addition, if your client has also fully utilised their non-concessional cap, it will be important they elect to release any excess concessional contributions so they don’t exceed their non-concessional cap too.
The introduction of payday super is not just a problem for employers. SMSFs and their advisers also have a role to play in ensuring a smooth transition.
Want to keep up to date on the latest on Payday Super? Heffron's Super Companion will be updated mid-April with content unpacking the impact of payday super on the timing and allocation of superannuation contributions, things SMSFs can do to help ensure employers meet their SG obligations, and steps which can be taken to reduce the impact of potential excess contributions. Learn more here.