Payday Super is Coming from 1 July 2026

From 1 July 2026, the way employers calculate, pay and report super is changing.

The new Payday Super rules mean super will be calculated on qualifying earnings (QE) and paid each payday, not quarterly.  Qualifying earnings is ordinary time earnings, salary sacrifice contributions and other payments included in salary or wages for Super Guarantee (SG) purposes.

While many employers may not pay more super overall, the timing, reporting and compliance obligations will change significantly. Planning ahead now will make the transition much smoother. 

What is Payday Super?

Payday Super changes how and when super guarantee (SG) is paid.

From 1 July 2026, employers must:

• Pay super at the same time as salary and wages

• Ensure it is received by the super fund within 7 business days

• Calculate super on qualifying earnings (QE) instead of ordinary time earnings (OTE)

The SG rate remains 12%.

What are Qualifying Earnings (QE)?

Qualifying earnings bring together:

• Ordinary time earnings (OTE)

• Salary sacrifice contributions

• Other payments currently included in salary or wages for SG purposes

For many employers, QE will be similar to what they already use — but it must now be reported.

Key Changes at a Glance

Payment Deadlines

• Super paid each payday

• Funds must receive it within 7 business days

Calculating super guarantee amounts

• The super guarantee amount is calculated as 12% of qualifying earnings (QE)

• QE includes OTE, salary sacrifice contributions and other amounts currently included in an employee’s salary or wages

  
  

Reporting

• Report QE and SG liability through STP

Late Payments & Super Guarantee Charge (SGC)

• The SGC applies when amounts aren’t received by a super fund within 7 business days of payday

• Assessed by the ATO

• Based on QE

• Includes daily compounding interest at the general interest charge rate

• Administrative uplift (may be reduced with voluntary disclosure)

• Tax deductible

Penalties

• 25% or 50% of unpaid SGC depending on prior penalties

Payroll & System Improvements

To support the change:

• SuperStream standards will enable near real-time payments

• Better error messaging will reduce delays

• New member verification checks will confirm fund details before contributions

• Fund Validation Service upgrades will notify employers of fund changes and mergers

SBSCH Is Ending

The Small Business Superannuation Clearing House (SBSCH):

• Closed to new users in October 2025

• Fully closes 30 June 2026

• All employers must move to alternative payment solutions

What Employers Should Do Now

✔ Review payroll systems and software

✔ Speak with your payroll provider or adviser

✔ Prepare for more frequent super payments

✔ Ensure employee super details are accurate

✔ Consider moving to payday super earlier to get ahead

The Bottom Line

Payday Super aims to ensure employees receive their super sooner and reduce unpaid super.

For employers, it means stronger compliance requirements and tighter timeframes — but with good preparation, the transition can be smooth.

If you’d like help reviewing your systems or preparing for Payday Super, contact your Client Manager.