Real estate agencies across Australia will need to overhaul payroll systems and cashflow management ahead of sweeping superannuation reforms that take effect on 1 July 2026.
Under the Federal Government’s new Payday Super regime, employers must pay Superannuation Guarantee contributions at the same time as wages or salaries, replacing the long-standing quarterly payment system.
Contributions must reach employees’ super fund accounts within seven business days of payday.
For a typical agency running a fortnightly payroll, that means processing 26 super payments a year instead of four.
Bryan Wilcox, chief executive of REEF, describes the change as unprecedented in its operational impact on the sector.
“From 1 July 2026, Payday Super will require Superannuation Guarantee contributions to be paid with every pay run (rather than quarterly), and employers will have to ensure funds reach nominated superannuation accounts within seven business days,” Mr Wilcox said.
“While acknowledging the good intentions behind the new legislation, there will be some negative and perhaps unintended consequences for all real estate business owners.”
A fundamental shift
Under current rules, employers remit superannuation quarterly. From July 2026, payments must align with each pay cycle – weekly, fortnightly or monthly.
The legislation also introduces “Qualifying Earnings” as the basis for calculating contributions each pay cycle, covering ordinary time earnings and salary sacrifice amounts.
Mr Wilcox said the frequency shift would have immediate financial and administrative consequences.
“Firstly, there will be an impact on a business’s cashflow as employers will effectively be required to make super payments on the same day wages are paid rather than being able to make the super payments at the end of a quarter,” he said.
“Secondly, there will be an increased administrative burden. For real estate employers who run a weekly or fortnightly payroll (which is the majority of employers in the real estate industry), they will have to remit super payments up to 52 times a year. This represents a significant increase from the current requirement to remit super payments four times a year.”
The impact may be amplified by the Real Estate Industry Award 2020, which requires commission-only employees to be paid within 14 days of commissions being received – potentially triggering super payments outside standard payroll cycles.
“And then lastly, there will be an added cost burden to all businesses. Whether the payroll function is completed ‘in-house’ or outsourced, it will undeniably cost more for employers to make super payments and remain compliant with the new Payday Super laws,” Mr Wilcox said.
Clearing house closure and compliance risks
Further pressure comes from the closure of the Australian Taxation Office’s Small Business Superannuation Clearing House, which will stop accepting new registrations from October 1, 2025 and shut entirely on July 1, 2026.
Agencies relying on the free service will need to transition to alternative clearing house arrangements or integrated payroll software.
Late or missed payments will trigger the Super Guarantee Charge, which includes the unpaid amount, interest (currently 10 per cent) and a $20 administrative fee per employee per quarter. These amounts are not tax deductible.
Additional penalties may apply if outstanding super remains unpaid 28 days after an ATO notice, including notional earnings to compensate employees for lost investment returns, administrative uplift charges and “choice loading” penalties.
The ATO has indicated it will prioritise education and support in the first year of implementation for businesses making genuine efforts to comply. A Practical Compliance Guideline is expected before commencement.
Cashflow pressure
For agencies operating on tight margins or with large sales teams earning variable commission income, the change represents a structural shift in working capital management.
Rather than setting aside funds for quarterly remittance, businesses will need to ensure sufficient liquidity every pay cycle.
“Unfortunately, the strategies available to manage the changes are limited. Employers need to have the relevant superannuation funds available for payment. It’s the frequency of payment which will require careful management, and employers should consider new cash flow requirements when formulating budgets and forecasting,” Mr Wilcox said.
He noted some employers paying weekly may consider moving to fortnightly or monthly cycles.
“Subject to complying with any relevant legislative and contractual consultation and notice requirements, employers who pay on a weekly pay cycle could consider moving to fortnightly or monthly pay cycles. The REEF employment agreements already provide a level of flexibility around the changing of pay cycles, but employers would, however, need to take care when adopting any changes, as both the Real Estate Industry Award 2020 and the Clerks Private Sector Award 2020 have very specific rules around how this can occur.”
Industry bodies and super funds are urging businesses to begin preparations well before 2026, and Mr Wilcox said agencies should treat the reform as urgent.
“Real estate employers need to be aware of the new rules and start making plans for 1 July, which is already a notoriously busy time of year with end-of-year tax concerns and looming trust account audits. The penalties for non-compliance of the Payday Super obligations are significant, and employers will have nowhere to hide from the Regulators if they haven’t got ‘their house in order’.”
He also encouraged early alignment of payroll and super processes.
“While it is not a legal requirement, REEF would strongly encourage real estate employers to commence paying superannuation at the same time they pay salary, wages and commissions so that they are ready to comply with the 1 July 2026 requirements.”
