3 FEBRUARY 2026

From 1 July 2026, the way you pay superannuation is changing. While that date might feel a long way off, now is the time for dairy farmers to start thinking about what this will mean for their cash flow, payroll systems, and processes.

These changes are known as Payday Super, and they will affect every employer in Australia.

What is Payday Super?

Under the new rules, super will need to be paid at the same time as wages. Instead of paying super quarterly, employers will be required to:

• Calculate super each pay run
• Pay it on payday, alongside wages
• Ensure it is received by the employee’s super fund within 7 business days

This is a significant shift from the current system and will require changes to how payroll is run.

What’s changing in simple terms?

From 1 July 2026:

• Super will be paid at 12%
• It will be calculated on Qualifying Earnings (QE)
  This is a new term that brings together:
• Ordinary Time Earnings (OTE)
• Other payments that will now attract super
• Super must be paid every payday, not quarterly

Why farmers should start preparing now

While the rules don’t start until 2026, waiting until the last minute will make this harder than it needs to be. For many farms, Payday Super will:

• Change cash flow timing
• Increase the importance of accurate, up-to-date payroll
• Require discussions with bookkeepers, payroll providers, or accountants
• Highlight any gaps in record-keeping or classification of earnings

Practical steps you can take now

You don’t need to overhaul everything today, but you should start preparing:

• Talk to your bookkeeper or accountant – Ask whether your payroll system will be ready for Payday Super and what changes will be needed.
• Review how often you pay wages – The more frequent your pay cycle, the more often super will need to be paid.
• Check what you currently include as OTE – Understanding what makes up Qualifying Earnings will be critical.
• Factor super into cash flow planning – Quarterly super buffers will disappear. Super will become a regular payroll expense.
• Keep good records – Timely, accurate payroll records will be more important than ever.

ATO Resources

The Australian Tax Office has developed a range of clear and practical resources to help explain these changes. You can access them here: Payday Super resources | Australian Taxation Office.