The Australian Government’s payday super reform, scheduled to begin on 1 July 2026, will require employers to pay superannuation on the same day as wages. This is a major shift from the current quarterly contribution system. For labour hire and recruitment businesses that run frequent payroll cycles, the impact on cash flow and administration will be significant.
With less than a year to go, now is the time to prepare for the upcoming changes.
The Change: Super Contributions With Every Pay Cycle
Labour hire businesses often work with long client payment terms. It is not uncommon to wait 30,60 or 90 days for invoice payments. Currently, you can float quarterly super payments while waiting for that income. But from July 2026, that buffer disappears.
For labour hire firms managing temps or contractors, this creates two key challenges:
- Tighter cash flow: You will need access to more funds, more often
- Increased admin: Systems and teams must adapt to higher processing volumes
Why It Matters for Labour Hire and Recruitment
Labour hire businesses often work with long client payment terms. It is not uncommon to wait 30 to 60 days (or longer) for invoice payments. Currently, you can float quarterly super payments while waiting for that income. But from July 2026, that buffer disappears.
This creates pressure in three areas:
1. Cash flow
You will need to outlay super contributions more often, even if your clients have not paid you yet.
2. Compliance risk
Super payments must be made on time. Missing a due date by even a few days can result in penalties.
3. Admin workload
Payroll teams will spend more time reconciling super contributions and ensuring accurate payments.
How to Prepare
1. Start Forecasting Now
Use the next 12 months to model how payday super will impact your cash flow. Consider how often you pay staff versus how quickly you get paid by clients.
2. Review Payroll Systems
Ensure your systems can handle frequent super contributions. Most payroll software cloud-based platforms will roll out payday super functionality, but you may need to adjust your processes.
3. Outsource Payroll to Specialists
Services like APayroll are purpose-built for recruitment and labour hire. We manage your; payroll, super, compliance reporting and back-office support, saving your team time and reducing any errors.
4. Access Flexible Funding
If long payment terms are stretching your ability to pay wages and super on time, invoice funding can help. AFunding provides upfront access to cash for any unpaid invoices, giving you the cash flow needed to meet payroll and super obligations without delay.
Our solutions work together. APayroll handles your admin and compliance, while AFunding ensures you have the cash available when you need it.
Get Ahead of the Change
The move to payday super is not just a compliance shift. It is a cash flow and operations issue that will affect how labour hire businesses run day to day.
Those who prepare early will avoid last-minute panic and position themselves for smoother growth. If you are unsure where to start, our team can help you assess your current setup and recommend a tailored plan.
Need support preparing for payday super?
Reach out to the APositive team to talk through your options, please get in touch with us today.
