Reddit "Ask Me Anything Session" with Xero - Payday Super

I recently hosted a Reddit Ask Me Anything (AMA) session with Xero to answer questions on Payday Super.

From 1 July 2026, superannuation payments will no longer be a quarterly obligation. Contributions have to reach your employees' fund within 7 business days of each pay event; this means you'll be processing super every time you run payroll.

In the AMA session, a lot of the same questions came up again and again, so I've pulled together the top 5 FAQ’s along with a summary of my responses, in case they're useful to you too.

"I already use Auto Super in Xero, does my process change?"

This came up a lot. The short answer is no, the process stays the same, you'll just do it at each pay event instead of quarterly. Your direct debit stays in place, and funds are drawn automatically once you've created and authorised the batch. And, to make things easier, Xero have enhanced the workflow so that we can pay super for the same screen we process payroll from. Under “make a payment”, you will have the option to pay super.

"How long does super actually take to land in my employee’s fund?"

Easily the most discussed topic. Auto Super is designed to help you meet Payday Super timelines, with contributions typically paid to funds within 4 business days of the payment date. It is important to note that the Auto Super payment batch in Xero will update to “Paid” only once SuperChoice, their third-party clearing house confirms the credit was successful. Business days do not include weekends, Australia-wide or state-wide public holidays, and there is a daily 4pm AEST cut off time for processing payments as set by the banks, so keep this in mind when reviewing the payment status. Under Payday Super, super funds must then allocate the contributions to the member accounts within 3 business days or return the funds.

TIP: For employees being paid for the first time, or when paying to a super fund for the first time, you actually have 20 days for contributions to be paid into the employees’ super fund.

"Can we please have a backup super approver?"

The number one request of the whole session! My understanding is that an enhanced approvals workflow is a priority for Xero and they are actively working on this with a targeted release later this year. Until then, my tip is to get the right authoriser set up ahead of time and update the details before anyone heads off on leave. And remember, a subscriber is able to update who the approver is, even if they are not set up as the super authoriser in Xero.

"How do I pay contractors' super?"

The thorniest topic by far. To pay contractor super through Auto Super, you add them as an employee with the type set to "Contractor," then include them in a pay run that picks up the super payable. Contractor’s super is still payable within 7 business days based on when you actually pay their invoice, so I’m encouraging business owners that pay super for contractors to communicate with their subbies and move to a set processing day for supplier payments to ensure they keep things as streamlined as possible. If you are unsure on how to set up for paying contractors super, check out the link I have dropped into the comments section.

"The SBCH is closing, what do I do?"

The ATO's Small Business Super Clearing House won't be available after 30 June 2026. Log in before then and download all your reports and history, because you won't be able to get to it afterwards. And make sure you've got a new way to pay super sorted before 1 July, if you’re already using Xero, you can find how register and set up Auto Super via a link I have dropped into the comments section.

If you want to go check out all the comments, or join the conversation and ask your own questions, the link to Reddit is in the comments. 😊

Reddit AMA:

https://www.reddit.com/r/XeroOfficial/comments/1ss23av/payday_super_ask_me_anything_hosted_by_martine/

How to register for Xero’s Auto Super:

https://central.xero.com/s/article/Register-for-automated-super-payments

How to process Contractors Super:

https://central.xero.com/s/article/Pay-superannuation-for-a-contractor