The reform, introduced by the Australian Taxation Office (ATO), will require employers to pay Super Guarantee (SG) contributions at the same time as wages, rather than quarterly.
For community pharmacies, the change brings operational adjustments alongside long-term benefits for staff financial wellbeing.
What’s changing now
Under the new rules, SG contributions must be received by an employee's fund within seven business days of each payday.
This aligns super with wage cycles and is intended to reduce missed or delayed payments, improve transparency and strengthen retirement outcomes for workers.
For pharmacy employees, more frequent contributions mean earlier investment, more consistent compounding and clearer visibility of their super balances.
The SG rate remains at 12 percent, but the basis for calculating it shifts to qualifying earnings (QE).
QE includes ordinary time earnings, commissions, salary sacrifice amounts that would otherwise have been QE, and payments to workers captured under the expanded definition of employee.
This includes locums paid directly, even those with an ABN who invoice for their work. Locums engaged through labour hire companies are excluded, as the labour hire company is considered the employer.
Employer obligations
Pharmacy owners and payroll managers will need to ensure their systems can process super in real time.
This includes confirming that payroll software can calculate QE correctly, report SG liabilities through Single Touch Payroll, and transmit contributions promptly.
More frequent payments will also require more frequent reconciliations, and employers should review cash flow settings to accommodate weekly or fortnightly SG outflows.
A significant administrative change accompanies the reform: the Small Business Superannuation Clearing House (SBSCH) will close on June 30 2026.
Pharmacies currently relying on the SBSCH will need to transition to an alternative solution, such as their accounting platform or another clearing house.
For those partnered with GuildSuper as their default fund, SuperConnector is available as a no cost option.
Employers will also need to ensure they hold accurate fund details and unique identifiers for each employee. Incorrect information may result in contributions being returned, delaying compliance and increasing administrative load.
Late or missed SG payments will attract additional charges and interest under the SG charge framework.
This makes timely processing essential, as penalties apply even when delays are unintentional and can increase the administrative burden for employers.
Planning payroll workflows early will help reduce the risk of non compliance once Payday Super takes effect.
Impact on employees
Employees stand to benefit from the reform through more regular contributions and reduced risk of underpayment.
Earlier contributions mean super is invested sooner, supporting stronger long-term growth. According to the Association of Superannuation Funds of Australia (ASFA), a 25-year-old on median income could retire with around AUD 6,000 more simply by receiving super fortnightly instead of quarterly.
The change also supports improved retirement outcomes for women, who make up a large proportion of the pharmacy workforce and are more likely to work part time.
More information
With the 2027 financial year approaching, pharmacies are encouraged to begin preparing now.
Early conversations with payroll providers, software updates and internal process reviews will help ensure a smooth transition.
- Pharmacists and employers seeking further detail can visit the ATO's Payday Super guidance
- Further information for small businesses is available at the Small Business Peak website
- For workplace relations support, visit the Pharmacy Guild's Workplace Relations resources
This article has been funded by the Australian Government Department of Employment and Workplace Relations, in partnership with the Australian Chamber of Commerce and Industry (ACCI), through the Productivity, Education and Training Fund grant program.
