PayDay Super & SMSFs: Three things to do

From 1 July 2026 the PayDay Super system applies to Superannuation Guarantee contributions (SG contributions).  Essentially, when an employer pays their employees, they must also pay the SG contributions due in respect of the employee.  Generally, the employer is required to ensure that the SG contribution payment is received by the employee’s superannuation fund within 7 days of the employee’s pay day.

For self managed superannuation funds (SMSFs) to receive SG Contributions on or after 1 July 2026 from non-related employers, the trustee of the SMSF must ensure:

• that the ATO has been advised that the employee is a member of the SMSF – otherwise the SG contribution will not be made to the SMSF, as the SMSF will fail the member verification request. That is, “superstream” will treat the employee as not being a member of the SMSF and so the SG contribution cannot be made to the SMSF;

• the SMSF has a current electronic service address – otherwise the SMSF cannot participate in the superstream system; and

• the bank account of the SMSF can be accessed by the New Payment Platform. This can be checked by contacting the particular bank.

If the SMSF is entirely in pension phase and no employer contributions will be paid to the SMSF – now or in the future – the SMSF can operate in splendid isolation of PayDay Super.  However, for the SMSF to receive or effect rollovers from or to other funds, it must have an Electronic Service Address which permits rollover transactions.