Super changes reshape payday routines

One month after Payday Super began, hospitality businesses have updated their payroll systems to comply with the new rule requiring superannuation payments at the same time as wages.

Figures from MYOB, drawn from anonymized transactions across about 1,400 hospitality and food businesses, reveal the portion making weekly super payments rose from 42% in early June to 78% in July. That marks an 85% increase. In the first full week under the reforms, super payments occurred 3.3 times more frequently than in a average week before July 1.

In July, wages and super were paid in the same week in 70% of cases, compared with 25% before the change. The adjustment indicates employers have shifted from quarterly super payments to a more frequent, aligned schedule.

Before the reforms, hospitality and retail businesses were considered likely to struggle more than other sectors. Their cash flow is often unpredictable, with frequent changes in trading conditions. A MYOB Business Monitor survey of over 1,000 small and medium-sized business owners found 51% of retail and hospitality operators expected Payday Super would impact their cash flow, compared with 35% across all SMEs.

At that time, 37% of businesses in the sector reported facing “extreme” or “quite a lot” of cash flow pressure. Nearly half identified the new super payment schedule as a concern, more than double the 21% average across all industries.

The early figures show those worries haven’t stopped businesses from adapting. Moving to weekly payments may have required some to rethink revenue and expense management, but it hasn’t halted the transition.

If the trend continues, it may reflect a wider change in how small businesses manage payroll and cash flow. The approach now favors regularity over flexibility, even when flexibility has long been a key survival strategy.

Kim Owen-Jones, MYOB’s general manager for SMEs, said the reforms haven’t altered the total amount businesses pay in super, but they have changed the payment pattern. For small businesses used to a different schedule, the adjustment has been noticeable.

“Those handling the change well are tracking exactly when money arrives, when super and other bills are due, and ensuring they aren’t caught short,” Owen-Jones said. “For many, this means setting funds aside as sales come in, rather than waiting until the payment deadline.”

She noted Payday Super is encouraging businesses to monitor their finances more carefully. “The sooner they know what’s coming in and what needs to go out, the easier it is to maintain steady cash flow.”

The data doesn’t yet reveal whether the shift has improved or worsened cash flow pressures. It does show employers are meeting the new requirements without abandoning the system.

Hospitality may be the first sector to show how Payday Super is changing payroll practices. Other industries with irregular cash flow—like retail, construction, and seasonal services—could soon face similar changes.