Payday Super and what this means for you as a Xero User

What is changing

From 1 July 2026, you’ll need to:

• Pay super at the same time as your payrun, rather than quarterly; and
• Ensure contributions reach your employees’ super funds within seven business days of payday
• The ATOs Small Business Superannuation Clearing House (SBSCH) will close completely on 30 June 2026, so businesses using the SBSCH today need a new way to pay super before that date.

What this means for Xero users

If you’re using Xero as your accounting software, you’re already in a strong position to manage this transition. However, there are a few key steps to ensure you’re compliant and ready:

• Review your current payroll and super payment processes
• Make sure all employee super fund details are up to date
• Ensure super is calculated and ready to be paid with each pay run
• Check your clearing house setup and payment workflows in Xero
• Maintain sufficient cash flow to meet more frequent super payments

What you need to do now

While the change doesn’t start until July 2026, we are recommending transitioning earlier to ensure processes are in place and running smoothly by this date.

• If you currently use Xero Payroll with Auto Super, you’re in a good place for this change. As you already submit contributions electronically via a compliant super clearing house.
• If you currently use Xero Payroll but not Auto super, we recommend transitioning over to Auto Super within Xero https://central.xero.com/s/article/Process-superannuation-payments
• If you currently use Xero but not Xero Payroll, please review your current tools for paying super and if this can handle per-pay-run super and electronic submissions to meet the seven business days compliance.

How we can help

Please contact us to assist

• with reviewing your Xero file, updating payroll settings, and helping you prepare for these changes to ensure a smooth transition.
• if you would like to transition to Xero Payroll and Auto Super.

 

McAdam Siemon Business Advisors … Adding value, every step of the way.