26 March 2026
Payday Super Changes for Strata Managers
Understanding the Shift to Payday Super
From 1 July 2026, superannuation contributions will generally need to be paid at the same time as wages, rather than quarterly. This change brings super into the regular payroll cycle and removes the ability to defer payments until the end of each quarter.
For strata managers, this is relevant both within your own business and across your portfolio. Many strata companies directly employ caretakers, cleaners or other workers, and these arrangements will be directly impacted.
It is also worth noting that some contractors paid via invoice are treated as employees for superannuation purposes under ATO rules. Under Payday Super, this means their super will need to be paid at the same time as their invoices, rather than being deferred or paid separately.
What This Means in Practice
The key change is that super will now need to be processed every time you run payroll. This shifts super from a periodic quarterly task to part of the standard pay cycle.
For strata managers, this means:
- Super needs to be calculated and paid with each pay run;
- Contractors deemed employees must be included in the process; and
- Payroll systems need to support timely super payments.
A number of managers currently use the ATO Small Business Superannuation Clearing House to manage super payments. This service is closing from 1 July 2026, meaning super will need to be processed directly through payroll systems rather than via an external clearing house.
A key point to be aware of is that sole trader contractors, even where they have an ABN, may still be entitled to superannuation where they are engaged principally for their labour on an ongoing basis. These arrangements are also captured by the Payday Super changes, which can add a layer of complexity, particularly where they have historically been managed outside of payroll systems.
Although the changes commence from 1 July 2026, we strongly recommend adopting Payday Super processes in advance, ideally by April or May 2026. This allows time to implement changes and work through any workflow issues before the rules become mandatory.
Late Super Payments and Penalties
The move to Payday Super does not relax the existing penalty regime. In practice, it increases the importance of getting payments right and on time.
If super is not paid when required, a superannuation guarantee charge (SGC) may apply. This can include:
- The super shortfall, calculated on ordinary time earnings;
- Notional interest on unpaid amounts;
- An administrative uplift, which replaces the current flat fee and is calculated as a percentage of the shortfall;
- Additional interest and penalties if amounts remain unpaid.
From 1 July 2026, the SGC framework is being updated, including the introduction of a significantly higher administrative uplift and a more structured penalty regime for unpaid amounts.
While this is intended to be offset by the SGC becoming tax deductible under section 8-1 of the Income Tax Assessment Act 1997, where it is incurred in gaining or producing assessable income, this outcome will rarely, if ever, apply to strata companies.
As discussed in our previous articles, strata levies are generally not assessable income. This means there is typically no direct nexus between the expense and the earning of assessable income, and therefore no deduction available.
In practical terms, this means the increased penalties will apply, but the benefit of deductibility will rarely be realised for strata companies.
How We Are Handling This For Our Strata Manager Partners
For clients where we assist with payroll for the properties they manage, planning is already underway.
Over the coming months, we will be working with our strata manager partners to review affected properties, particularly where contractors may fall within the superannuation rules. This includes identifying relevant arrangements and progressively transitioning these into a process where super is paid in line with each pay run.
For schemes with caretakers, cleaners or similar arrangements, payroll and super are managed through Employment Hero using BEAM. This approach supports more frequent super payments and accommodates both employees and contractors who are deemed employees for super purposes.
Bringing contractors into this same process allows super to be paid at the same time as their invoices, helping ensure a consistent and compliant approach under the Payday Super requirements.
Payday Super won't affect all strata managers, and those that are affected just need to be aware and timely in changing up their systems, particularly if any of your managements pay superannuation to contractors who ordinarily charge on invoice.
Quick Takes
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Super must be paid at the same time as wages from 1 July 2026
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The ATO clearing house is closing, requiring a shift to payroll-based processing
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Sole trader contractors may still be entitled to super and are captured by the changes
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Penalties are increasing, while deductibility will rarely apply to strata companies.
The above content is of a general nature and should not be relied upon as professional advice. Ascend encourages readers to seek advice from suitably qualified professionals in relation to their specific circumstances and not to rely solely on the information provided above. Please contact our office for more information.
(C) 2026 Ascend Strata Pty Ltd