What is Payday Super?
From 1 July 2026, the Payday Super reforms replace the quarterly super payment system. Employers must now:
- Calculate super guarantee (SG) contributions on qualifying earnings (QE) — including ordinary time earnings and some contractor payments. (softwaredevelopers.ato.gov.au)
- Pay super at the same time as wages, with payments received by the employee’s super fund within 7 business days after each payday. (community.ato.gov.au)
The frequency of payments changes drastically — this means employers will need to modify payroll, cashflow, reporting and fund-validation systems. (softwaredevelopers.ato.gov.au)
Key Actions for Employers
| What to do | Why it matters |
|---|---|
| Review payroll software now | Ensure it can report QE, track balance year-to-date, issue contributions, and meet the 7-day rule. (softwaredevelopers.ato.gov.au) |
| Switch from SBSCH before July | Small Business Superannuation Clearing House closes 1 July 2026; existing users must switch to other SuperStream-compliant payment options. (ato.gov.au) |
| Plan cashflow around multiple payments in early July | You’ll have both the final quarterly payment (for Q4 2025-26) due 28 July and Payday Super obligations. (community.ato.gov.au) |
| Update reporting via STP | You’ll need new pay codes (e.g. code ‘Q’ for qualifying earnings) and to report SG liability per payday, Year-to-Date QE, etc. (softwaredevelopers.ato.gov.au) |
Transitional Considerations
-
The final quarterly super payment under current rules is due 28 July 2026 (for the quarter ending 30 June 2026). The SBSCH closes 30 June 2026. (ato.gov.au)
-
Super contributions made between 1 and 28 July 2026 will first be applied against outstanding quarterly SG obligations. From 29 July, payments will apply against Payday Super obligations. (community.ato.gov.au)
Example
Scenario: Small café employer currently using quarterly SG payments via SBSCH. Weekly payroll: pays wages every Friday. Starting 1 July 2026:
- Pays wages on Friday 5 July. That payday becomes a QE-day. Must calculate QE (wages + applicable amounts) and pay SG to super fund to be received within 7 business days (by ~Friday 12 July).
- On Friday 28 July, would still need to make the quarterly payment for Q4 (April-June), due 28 July. Any super paid earlier (under Payday Super) in July will apply first to cover that quarter. (community.ato.gov.au)
Key Risks and Compliance Areas
- Missing the 7-business-day window may trigger SG charge liability.
- Misreporting or failing to include proper QE items or incorrectly mapping payroll codes could lead to underpayments or non-compliance.
- Failure to transition from SBSCH may leave records inaccessible or incur errors.
Take-Away Checklist
- Identify or engage SuperStream-compliant payment provider.
- Audit payroll items to determine what counts as QE.
- Update single touch payroll (STP) reporting for per-pay period SG liability and QE.
- Communicate with employees about super funds (stapled funds, verifications).
- Monitor cashflow to ensure timely payments.
By planning ahead and updating systems now, employers can transition smoothly and avoid penalties under the new Payday Super regime.