With just 100 days to go until Payday Super lands on 1 July, a lot of Aussie businesses are starting to sweat.

New research from MLC shows more than half of employers (55 per cent) aren’t confident they’ll be ready for the change. At the same time, Xero data paints an equally tricky picture for small business owners, with cash flow pressures and late payments threatening their ability to keep up.

Payroll but not as you know it

From 1 July 2026, superannuation will need to be paid at the same time as wages, instead of quarterly. The change is designed to reduce unpaid super and boost retirement savings. It’s great news for employees, but a decent shake-up for anyone running payroll.

Dave Woodall, CEO of MLC Super, says businesses can’t afford to leave this one to the last minute.

“Payday Super is a major shift in payroll processes for Australian businesses and it’s fast approaching, so preparation is essential,” he said.

Woodall warns it’s not as simple as flicking on a switch. Businesses will need to update systems, double-check employee super details, and get used to much more frequent payments.

“We know for many employers, the shift to real-time Superannuation Guarantee (SG) payments will require substantial operational adjustments,” Woodall said.

There’s also a tighter turnaround: super payments will need to land in employees’ funds within seven business days of payday. Miss that window, and penalties can apply.

Small businesses are being squeezed

If you’re a small business owner thinking, “Sure, sounds fair… but where’s the cash coming from?”  it’s a reasonable question.

Xero’s research shows 87 per cent of small businesses expect more frequent super payments to put pressure on cash flow. Meanwhile, 84 per cent say late customer payments could stop them from meeting their obligations altogether. On average, small businesses lost $15,257 last financial year due to late payments.  Angad Soin, Managing Director ANZ at Xero, says the issue runs deeper than compliance.

“When one in three small business owners say they may need to use personal savings to meet Payday Super obligations, it’s clear this change is about more than compliance,” he said. “It’s about whether businesses have the visibility and control to manage their cash flow with confidence.”

Some owners are already bracing for impact. Around a third expect to dip into personal savings or borrow money, while others plan to delay expenses, or even their own pay,  to stay compliant.

Growth plans take a hit

While payday super might be a new weekly, fortnightly or monthly headache for your small business, Xero warns the change could impact far more than cash flow. According to Xero’s research, 82 per cent of small businesses expect they’ll need to delay or scale back growth or investment plans in 2026.

Despite this finding, there’s a bit of cautious optimism. Nearly two-thirds of businesses believe they’ll be fully up to speed within six months of the changes kicking in. So while the transition might be bumpy, it’s not all doom and gloom.

Getting ahead before the deadline

Both MLC and Xero agree on one thing: now’s the time to get organised. Woodall says early preparation will make all the difference.

“We understand that changes of this scale can create uncertainty, especially for small- and mid-sized employers. But with early preparation and the right support, Payday Super doesn’t need to be disruptive,” he said.

On the Xero side, the focus is on tightening up systems and improving cash flow visibility.

“The right digital tools and automation can make a real difference,” Soin said. “They give businesses better visibility, reduce manual admin, and help bring payroll and payments into a more connected workflow.”

Employee awareness limited

One twist most haven’t seen coming is employee awareness.

MLC found 80 per cent of Australians haven’t heard of Payday Super, and 85 per cent don’t know when it’s coming in, despite the fact it could boost their retirement savings. So while business owners are scrambling to prepare, many employees are blissfully unaware that there’s a pretty significant change on the horizon.

Meanwhile, the clock’s ticking for business owners. The best option is to start preparing now to make sure you’re compliant by the time July rolls around.

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