Following the official passing of the Payday Super legislation by the Australian Parliament. The Bill expects SMBs to Payday Super right on day one. At the same time, hundreds of thousands of SMBs will need to move off the ATO’s Small Business Superannuation Clearing House (SBSCH), set to close 1 July 2026. That’s a big ask, especially when you consider the 60% increase in admin overheads and $124,000 cashflow impact the average SMB will face on day one. Business software vendors are now racing to amend their solutions to meet the changes in 2026.

Angad Soin, Managing Director, ANZ & Global Chief Strategy Officer, Xero has made the following statement:

Xero welcomes the official passing of the Payday Super legislation by the Australian Parliament.

This legislation means real-time super payments are on the near horizon for Australia’s employers, with the changes set to take effect from 1 July 2026.

Aligning super contributions with pay cycles is a practical reform that promises to improve transparency and help reduce unpaid super, ultimately benefiting Australians in the long run.

We understand that these new obligations will take time for businesses to adapt to. Having anticipated this legislative reform, Xero has been proactively preparing for the 2026 transition, dedicating significant resources to make the shift to Payday Super as smooth as possible.

We are ready to support small business employers with the digital tools, education, and resources they need to meet the new compliance requirements effectively.

Given the lead time required to prepare, it is important employers engage with their advisors – such as their accountant or bookkeeper – now. Businesses should confirm whether their existing systems will support them from July 2026, so they can begin making any necessary changes as soon as possible.