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| Changes from 01 July 2026  

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What is Payday Super?

Payday Super refers to a reform by the Australian Government that would require employers to pay employees’ superannuation contributions at the same time as salary and wages commencing from 01 July 2026.

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Superannuation Obligations up to 30 June 2026

​Under existing rules administered by the Australian Taxation Office (ATO):

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• Employers must pay a minimum Superannuation Guarantee (SG) contribution of 12% x Ordinary Times Earnings

• Contribution can be paid weekly, monthly, or quarterly as long as the payment is received by the employee's superannuation fund by the quarterly due date

• Late payments result in the Superannuation Guarantee Charge (SGC), which includes penalties 

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What will change from 01 July 2026 under Payday Super

​Under the new Payday Super system:

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• Superannuation contributions must be paid on or before each payday

• AND the payment must reach an employee's superannuation fund within 7 business days

• Only, for new hires or first-time payments to a super fund, the timeframe is 20 business days from an employee's payday

• Reporting of the superannuation guarantee is to align with Single Touch Payroll (STP) systems

• A new concept 'Qualifying Earnings (QE)' is to be used to calculate an employee's super and the day you a payroll is completed becomes a QE day

• The penalties for late or missing super will align with Payday Super frequencies. After 30 June 2026, a Superannuation Guarantee Charge is not required to be lodged but will instead be replaced with a voluntary disclosure statement and the non-compliance penalties will be calculated from the employee's payday.

• The ATO's Small Business Superannuation Clearing House (SBSCH) will close on 30 June 2026 at 11.59pm and an alternative clearing house solution is required to be setup and ready to accept PayDay Super from 01 July 2026.

 

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What are the objectives of the reform

The new Payday Super system is been implemented to,

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• Reduce unpaid or late superannuation

• Improve transparency for employees

• Align super payments more closely with wages

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Impact on employer’s payroll requirements

​For most employers, it should only be adding another step in processing their employee’s wages obligations and should be something similar to the following,

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1. Process an employee’s salary and wags (recommended method: use a STP 2 complaint payroll software)

2. Issue payslips to employees (recommended method: send by email)

3. Pay Employee (recommended method: create an ABA file and upload to your bank account)

4. Lodge Single Touch Payroll to the ATO (recommended method: lodge using a STP 2 complaint payroll software)

5. (** New requirement from 01 July 2026) Lodge and pay Payday Super obligations for employees (recommended method: Use a complaint payroll software or a superannuation clearing house)

 

Furthermore, please consider the following impact to your current payroll requirements from 01 July 2026,

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• Payroll systems will need to support more frequent super payments

• Reduced tolerance for delays or errors on superannuation guarantee payments

• Greater real-time visibility by regulators

• Potential impact on working capital during July 2026 as the April ~ June 2026 superannuation guarantee is also required to be paid before 28 July 2026, as well as the new PayDay Super requirements from 01 July 2026

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How should businesses prepare before 01 July 2026

​Counting down to 1 July 2026, employers should begin preparatuion as soon as possible by taking the following actions:

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[Now] Understand the Payday Super changes

• Ensure your business understands the transition from quarterly to payday-based superannuation payments

• Confirm all employee super fund information is accurate and up to date to reduce risk of failed or delayed contributions

• Plan for cash flow changes and prepare for the shift to payday-based super payments

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[Before 30 June 2026] Review payroll and super processes​​

• Assess whether current payroll systems can support per-pay-cycle super payments and confirm compatibility with Single Touch Payroll (STP)

• If using the ATO's Small Business Superannuation Clearing House (SBSCH), plan to transition to an alternative clearing house, or payroll software with integrated super functionality (employers may still use the SBSCH to process April–June 2026 quarter payments before 30 June 2026)

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[From 01 June 2026] Payday Super is live

• Update onboarding process and request Choice of Fund form from employees early for new hires

• Pay super for April ~ June 2026 before 28 July 2026.

• Calculate super based on Qualifying Earnings.

• Make sure super contributions are received by employees’ super funds within 7 business days after payday.

• Report Superannuation guarantee through STP‑enabled payroll software.

• Check and confirm that your payments are on time, complete and correct to avoid any penalties

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Conclusion

​​Payday Super represents a significant reform to Australia’s superannuation system. While it introduces increased compliance requirements and operational changes, it also encourages businesses to modernise payroll processes and improve accuracy.

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For employers—particularly SMEs and overseas companies operating a business in Australia, early preparation will be critical to ensure a smooth transition and to maintain ongoing compliance.

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(Updated 29 April 2026)

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Disclaimer: 

Information based on facts we have summarised to the above updated date. We have not considered your personal circumstances and should you wish to consider it, please seek professional advice.

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