Payday Super 2026: What Employers Need to Know
Last reviewed:
Primary tax-year context: Current Australian tax settings
This article is general information only. We maintain pages using primary-source checks and date-based reviews. See editorial policy.
General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
The biggest change to superannuation in decades is coming. From 1 July 2026, employers must pay super at the same time as wages — not quarterly. This “payday super” reform was legislated on 6 November 2025 and will affect every employer in Australia.
What’s changing
Current rules (until 30 June 2026)
Employers must pay super quarterly, with payments due 28 days after each quarter ends:
| Quarter | SG due date |
|---|---|
| July – September | 28 October |
| October – December | 28 January |
| January – March | 28 April |
| April – June | 28 July |
New rules (from 1 July 2026)
Super contributions must be received by the employee’s super fund within 7 calendar days of payday.
If you pay an employee on Friday 3 July 2026, their super must hit their fund by Friday 10 July 2026.
Key requirements
1. “Qualifying Earnings” replaces OTE
The legislation introduces a new concept: Qualifying Earnings (QE). From 1 July 2026, SG is calculated as 12% of an employee’s qualifying earnings, which closely aligns with ordinary time earnings but with clearer definitions.
2. Reporting obligations
For the first time, employers must report the components of qualifying earnings used to calculate SG contributions. This means more detailed payroll reporting to funds.
3. Small Business Super Clearing House closes
The Small Business Super Clearing House will close from 1 July 2026. Small businesses will need to find alternative clearing house arrangements.
What happens if you’re late
Missing the 7-day deadline triggers the Super Guarantee Charge (SGC), which includes:
- The super amount you should have paid
- Interest charges (currently around 10% per annum)
- An administration fee of $20 per employee per quarter
Unlike the current quarterly system, late payments under payday super will accumulate quickly since each pay run creates a new deadline.
How to prepare
Review your payroll systems
Your payroll software needs to:
- Calculate super on each pay run
- Submit contributions to super funds within 7 days
- Track and report qualifying earnings
Check with your software provider about payday super readiness.
Understand your cash flow impact
Currently, you might hold 3 months of super contributions before paying quarterly. Under payday super, that cash buffer disappears. Model the impact on your working capital.
Find a clearing house
If you use the Small Business Super Clearing House, you need an alternative before 1 July 2026. Commercial clearing houses and many super funds offer clearing house services.
Update employment contracts
Review employment agreements to ensure super payment terms align with the new requirements.
ATO’s compliance approach
The ATO has released draft guidance (PCG 2025/D5) outlining a risk-based approach for the first 12 months. They’ve indicated:
- Priority will be given to higher-risk employers
- Genuine technical issues during transition will be treated sympathetically
- Employers who deliberately underpay or ignore obligations won’t receive leniency
Benefits for employees
Payday super means:
- Faster contributions: Money reaches super sooner, benefiting from compound growth
- Easier tracking: Contributions align with pay slips
- Reduced unpaid super risk: Employers can’t hold contributions for months
The government estimates employees will collectively benefit from billions in additional returns over their working lives.
Timeline
| Date | Event |
|---|---|
| 6 November 2025 | Legislation passed |
| 1 July 2026 | Payday super begins |
| 30 June 2027 | First full year of compliance |
Key takeaways
- 1 July 2026: Super must be paid within 7 days of payday
- SG rate: 12% of qualifying earnings
- SBSCH closure: Find an alternative clearing house
- Prepare now: Update payroll systems and cash flow planning
- ATO approach: Risk-based compliance in year one
This is a major operational change. Start preparing now to avoid scrambling in July 2026.
Related tools: Superannuation Calculator and Pay Calculator.