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Australian Payday Super, wage rises & write-off changes | Tradify™

Written by Team Tradify | Aug 7, 2026, 3:11:07 AM

From 1 July 2026, Australian trade businesses will need to adjust to changes including Payday Super, a 4.75% minimum award wage increase, and updates to the instant asset write-off. With the right planning, these updates could create opportunities to improve and invest in your business.

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  1. What are the latest changes to Payday Super in Australia?
  2. How does the 4.75% wage increase affect your margins?
  3. Is the $20,000 instant asset write-off permanent — and can tradies use it?
  4. Why do disconnected systems create compliance risk under Payday Super?
  5. What is the impact of using job management softwarde?

1. What are the latest changes to Payday Super in Australia?

From now on, super needs to be paid right alongside wages rather than once a quarter. That means super contributions must arrive in your worker's fund within seven business days of every single payday. The old cushion of catching up at the end of the quarter is officially a thing of the past

"When you're managing payroll, super, and invoicing across separate spreadsheets and notebooks, things will eventually fall through the cracks. Connected systems aren't just about saving time — they're about protecting your business." Michael Steckler, CEO, Tradify

The ATO permanently closed its free Small Business Superannuation Clearing House (SBSCH) on 30 June 2026. If you used to rely on that portal, you will need to switch to a SuperStream-compliant clearing facility inside your payroll or job management software before your first July pay run. Under the new rules, running late on super triggers automatic daily compounding interest and penalties from the ATO, so getting this sorted early saves a lot of headaches.

2. How does the 4.75% wage increase affect your margins?

For most trade business owners, wages and labor costs are by far your biggest overheads. When a 4.75% minimum award wage increase kicks in, your business expenses jump up overnight.

If you try to simply absorb that extra wage expense out of your own pocket, your profit margins will take a direct hit. The good news? You don't have to take the loss! The tradies who navigate wage rises smoothly are the ones who stay on top of their numbers. By keeping a close eye on job costing, charge-out rates, and real-time cash flow, you can adjust your job estimates and quotes accurately so every project remains profitable.

3. Is the $20,000 instant asset write-off permanent — and can tradies use it?

Yes. The Federal Budget 2026 confirmed the $20,000 instant asset write-off is now a permanent feature of the Australian tax system, legislated from 1 July 2026. If your business has an aggregated turnover under $10 million, you can immediately claim the full cost of eligible assets in the same financial year.

Two things worth knowing:

It's per asset, not a total cap. Buy a tablet, a laptop, and a diagnostic device in the same year and you can write off each one individually.

Software like Tradify doesn't eat into your $20,000 limit. The ATO classifies software subscriptions as operating business expenses, meaning you can claim Tradify as a standard business deduction and use the full write-off for physical gear — tablets, phones, laptops, diagnostic tools.

Handy tax rules to keep in mind:

  • What if gear costs more than $20,000? Don't worry, you don't miss out! Anything over the limit simply goes into your small business simplified depreciation pool, so you can still claim 15% in year one and 30% each year after.
  • The business-use split: You can only claim the portion of the purchase used for work. For example, if you buy a $1,500 tablet and use it 80% for jobs and 20% for personal stuff, you write off $1,200 ($1,500 × 80%).

Note: Assets must be installed and ready for use before 30 June of the income year you're claiming. Speak to your accountant about your specific situation.

4. Why do disconnected systems create compliance risk under Payday Super?

Under the old quarterly model, manual processes had a fighting chance. Under Payday Super, there's no catch-up window; errors quickly become compliance problems.

Tradify integrates directly with Xero, MYOB, and QuickBooks, so job data, invoices, and financials flow automatically between systems. No re-keying. No reconciling at midnight.

5. What is the impact of using job management software?

With tighter Payday Super timelines and rising labor costs, taking control of your daily operations isn't just nice to have — it’s essential for staying profitable and stress-free. This is where dedicated job management software like Tradify turns major industry changes into smooth sailing.

Instead of spending weekends swimming in paperwork, integrated job management software keeps your job costing, invoicing, and payroll data connected in real-time. The real-world results speak for themselves: insights from over 10,000 Australian trade businesses in Tradify's 2026 AU Trades Report show how connected workflows give tradies a genuine competitive edge:

  • Plumbing businesses using Tradify average $801,654 in annual invoiced revenue — 11% higher than the $720,000 industry benchmark.
  • Faster, more accurate job estimates lead to winning quote-to-job conversion rates of 87% (Plumbing, Gas, HVAC & Refrigeration) and 85% (Electrical, Property Maintenance, and Residential Renovations).
  • Over 90% of admin across plumbing, electrical, HVAC, carpentry, and renovation businesses is completed during normal working hours, eliminating midnight invoice catch-ups.

When your quoting is accurate, your cash flow is steady, and your payroll systems communicate directly with your accounting software, meeting compliance deadlines and protecting your profit margins happens naturally.

Based on Tradify's 2026 AU Trades Report data. Revenue figures represent invoiced revenue, not profit.

Having everything in one place with Tradify has helped me quote faster, keep customers updated and stay on top of the admin. It's given me back time to focus on delivering great work and growing the business."
— Alex Turner, Managing Director, TurnCo Building and Maintenance

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This is general information only — not tax or financial advice. Speak to your accountant or visit the ATO website for guidance specific to your situation.