Prepare for an SMSF shake-up in 2026
Self-managed superannuation fund (SMSF) trustees always have a lot on their to-do lists but the first few months of 2026 are likely to be busier than usual.
Topping the list is preparing for the introduction of Payday Super and the Better Targeted Superannuation Concessions on 1 July 2026.
Payday Super is a change to when you make your employees’ Superannuation Guarantee (SG) payment. From 1 July 2026, the SG must be paid to an employee’s super fund on payday and be received by the fund within seven business days. If you are taking on new employees or paying to a new super fund, these funds must be received within 20 business days.i
Employers are considered to have made a contribution when the fund receives it, not when they pay it, so SMSFs need to have the necessary systems set up and in place from 1 July.
Who’s affected?
The ATO has warned SMSF trustees that Payday Super should not be ignored.
If you are a business owner and pay contributions for yourself or your employees into an SMSF, the fund will be receiving more contributions and there will be increased administration requirements to deal with payment timing and record keeping.
The strict timing rules also come with tougher penalties and any delay may incur a Super Guarantee Charge, which is not tax deductible.
New clearing house partners
SMSFs also need to be prepared for closure of the ATO’s Small Business Superannuation Clearing House (SBSCH) from 1 July 2026.ii
Employers currently using the SBSCH should take immediate action to find an alternative. You could check your accounting software and payroll packages, which may already include super functions, or look at the options offered by commercial clearing houses or other software providers.
Failing to prepare for the SBSCH closure means you may risk a fine.
SuperStream updates
Payday Super’s 1 July start date will also usher in changes to contributions messaging within the SuperStream system, the electronic standardised format employers must use to make super contributions.iii
Changes include clearer error messaging and are designed to reduce employee contributions being rejected by the receiving super fund.
SMSF trustees need to ensure their internal systems are updated and ready to cope with the SuperStream changes, as timely and correct contribution payments are a key goal of the new rules.
According to ATO deputy commissioner Emma Rosenzweig, one of the most common SMSF errors in this area is where the Electronic Service Address (ESA) was never activated with the provider or is no longer active.
This error means the employer receives a SuperStream error message but does not receive the matching refunded super contribution.
Prepare for earlier contributions
The ATO is encouraging employers not to wait until 1 July to start making Payday Super contributions to help improve the transition.
SMSFs should also ensure they are able to receive contributions via the New Payments Platform (NPP), as employers who currently use direct debit are being encouraged to move to faster payment methods such as EFT and NPP.
With contributions flowing in more regularly – rather than quarterly – it may also be timely to reassess your SMSF’s investment strategy and portfolio allocation to ensure it remains suitable for the shift in contribution flows.
High balance tax changes
Another thing to be mindful of is from 1 July 2026, SMSFs will need to be prepared for the commencement of the government’s much delayed Better Targeted Superannuation Concessions.iv
These new rules are intended to reduce tax concessions for individuals with a Total Super Balance (TSB) above $3 million.
Under the new rules, people with higher super account balances will face a higher 30 per cent concessional tax rate on the proportion of earnings corresponding to their TSB between $3 million and $10 million.
With a higher TBC in place for 2025-26, SMSFs should consider the implications of the new tax regime prior to making any pre-30 June contributions and potentially breaching the indexed thresholds in future financial years.
For help preparing your SMSF for the upcoming changes, contact Carrick Aland in Dalby, Toowoomba or Chinchilla on 07 4669 9800.
i Spotlight on… Payday Super | Australian Taxation Office
ii The Small Business Superannuation Clearing House is closing | Australian Taxation Office
iii SuperStream for employers | Australian Taxation Office
iv Better targeted superannuation concessions | Australian Taxation Office
