Two in five Australian businesses have yet to assess how payday super will affect their cash flow, according to new research released one month before the reforms take effect.
An Employment Hero survey of 725 Australian businesses found two in five employers had either not reviewed or were unsure of the cash flow impact of payday super ahead of its commencement on 1 July 2026.
Under the reforms, employers will be required to pay superannuation contributions at the same time as wages rather than quarterly.
The findings come as the Australian Taxation Office continues to urge businesses to prepare, noting that more than half of employers are still not paying super more frequently than quarterly.
Employment Hero said the results highlighted the operational and financial challenges facing businesses, particularly small and medium-sized businesses already contending with rising costs, wage pressures and tighter cash flow conditions.
Rob Dunn, general manager, payments, superannuation and benefits at Employment Hero, said the transition period was rapidly narrowing.
“This is a huge change for every single business and the preparation window is closing fast. Our modelling showed businesses needs an average of $124,000 in additional working capital, and with inflation, rising costs and the upcoming ban of card surcharges, many businesses face a confluence of factors that could considerably impact their cashflow,” said Dunn.
The company said businesses face increased penalties for non-compliance under the new legislation and should review both payroll systems and cash flow positions before the deadline.
Employment Hero also pointed to its latest Jobs Report, which showed wage growth rose 1.6 per cent month-on-month, the strongest increase in more than six months, while annual growth remained at 4.8 per cent and continued to outpace inflation.
Dunn said employer concerns were centred on ensuring contributions reached employees’ superannuation accounts within the required timeframe.
“The penalties for getting this wrong are real and businesses need to take them seriously. The biggest concern we’ve heard consistently from employers is their liability for ensuring funds land within only seven business days. It’s not on the super fund, not the clearing house. It’s on the employer, regardless of the size of their business. That’s exactly why we built our embedded super clearing and validation solution, HeroClear, before the legislation was even finalised, to significantly reduce employers’ compliance risk with one single platform.”
While highlighting the readiness challenge, Dunn said more employers were beginning to adjust to the new payment requirements.
“The good news is, we’ve already seen a significant shift in Employment Hero customers paying super every pay run over the past six months. For businesses still on the sidelines, now is the time to act. Review your systems, understand your cash flow position and make sure you are set up to meet your obligations from day one.”
Employment Hero said its HeroClear platform, launched earlier this year, has processed more than $120 million in superannuation contributions and is growing at more than 140 per cent monthly as employers adopt automated compliance solutions ahead of payday super’s introduction.
Dunn said the reforms would ultimately benefit workers through faster and more transparent superannuation payments.
“Behind every one of those transactions is an employee receiving their super earlier, with full visibility over when it was paid and where it landed. More frequent payments, fewer lost accounts, better retirement outcomes. That is what this reform was designed to deliver, and as more businesses make the switch, that impact will only grow.”
