Since 1 July, super has to be in an employee's fund within seven business days of payday. For a new hire, that changes the timing of everything: the super setup that used to drift comfortably through someone's first month now has to be finished before their first pay run. Here is the sequence that gets a new starter's super right the first time, in the order it has to happen.
Step 1: Offer a choice of fund
At or before the employee's start, give them the ATO's Superannuation standard choice form, or your payroll system's digital equivalent. Most new employees are entitled to choose the fund their super is paid into, and offering that choice is your obligation, not a courtesy. The sooner you issue it, the sooner you can act on the answer.
Step 2: If they don't choose, request their stapled fund
If the employee doesn't nominate a fund, you can't simply fall back to your default any more. You must first ask the ATO for the employee's "stapled" fund — the existing account that follows them from job to job — through ATO online services, and pay their super there. Only if the ATO comes back and confirms there is no stapled fund do you use your business's default fund. Skipping the stapled-fund check is one of the most common payday-super errors for new starters.
Step 3: Set it up before the first pay run
Because payday super gives you days rather than weeks, the fund details have to be loaded into payroll before you process that first pay — not caught up afterwards. A first contribution that misses the seven-business-day window is late super, and it carries the same consequences as any other late super: the super guarantee charge, lost deductibility, and an ATO paper trail. The old habit of "we'll sort their super out in the first few weeks" is now a compliance risk on day one.
Step 4: Confirm the money actually lands
Under payday super the clock stops when the fund receives the contribution, not when you press pay. Clearing-house time sits inside your seven business days, so for the first contribution especially, trace it end to end: pay run, to clearing house, to fund, and count the business days it took. Do it once for each new starter and you will know whether your process genuinely clears in time.
The sequence on a timeline
Contract signed, then choice form issued, then either the choice comes back or you request the stapled fund, then fund details loaded into payroll, then the first pay run, then contribution confirmed as received within seven business days. Run it in that order and a new hire's super is never the thing that trips you up. Our super compliance checker walks through the payday-super mechanics, and the People Hub covers where super setup fits in the wider onboarding sequence.
FAQ
What if the stapled-fund request is slow?
Start it the moment an employee doesn't choose a fund, rather than waiting until pay day is looming. The request is usually quick through ATO online services, but requesting early gives you margin if it isn't.
Do contractors need this sequence too?
If a contractor is an employee for super purposes — which is common where they're paid mainly for their labour — then yes, payday super applies and the same choice-and-stapling steps run.
The ATO's free clearing house closed. What do we use now?
A commercial clearing house or your payroll platform's built-in super clearing function. Whatever you choose, factor its processing time into the seven-business-day window, because that time counts against you.
Sources: Australian Taxation Office, Offer employees a choice of super fund and Request stapled super fund details. Current as at 24 July 2026. General information, not advice.
Want to be sure your onboarding meets payday super? Our free Business Health Check reviews your payroll and super process in five minutes.
About the author
Nick Lucock
Chief Executive Officer, Valont
Nick leads Valont's day-to-day operations across Finance, People, Operations and Growth. He writes about how the work actually gets done, the processes, systems, and tools that keep Australian SMEs compliant and growing.
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