Compliance
Compliance Checklist for Employers under Payday Super Reform
From 1 July 2026, employers must make big changes under Payday Super. Use this checklist to ensure compliance and avoid penalties.
By NomadicTax Research Team • 5-8 min read • August 12, 2026
## What’s Changed with Payday Super?
- Employers must now pay super **every payday**, rather than quarterly. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iH/payday-super-starts-1-july-heres-what-employers-need-to-know?utm_source=openai))
- Super guarantee contributions must be based on **qualifying earnings** (including ordinary time earnings and certain contractor payments), not just OTE in previous versions. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- The contribution must **reach the employee’s super fund within 7 business days** after payday (some exceptions for new employees) to avoid Super Guarantee Charge liability. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iH/payday-super-starts-1-july-heres-what-employers-need-to-know?utm_source=openai))
- Single Touch Payroll reporting now includes **QE-day reporting**, with year-to-date qualifying earnings and super liability each payday. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Employer Obligations Checklist
| Task | Action to Take | Deadline/Comments |
|------|----------------|--------------------|
| Software readiness | Update payroll systems to handle **QE codes**, calculating contributions each payday, and producing updated STP data. | Before first payday after 1 July 2026. |
| Payment method | Ensure method is SuperStream-compliant; note that the **Small Business Superannuation Clearing House (SBSCH)** closes permanently 1 July 2026. Download all records before that date. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))|
| Cashflow planning | Because contributions spread over more periods, assess cash flow impact—each pay cycle has liability. | Ongoing. |
| Communication with staff | Inform employees when contributions are made; ensure fund details are up to date; explain what qualifying earnings are. | Prior to or at first pay cycle post-reform. |
| Record keeping | Maintain accurate records of earnings, contributions, whether on time, eligible late contributions; keep proof of payments received by super fund. | Minimum 5 years. ATO uses these in audits. |
## Risk Areas and Penalties
- **Late payments** can attract the Super Guarantee Charge; contributions received late are treated differently.
- Using non-SuperStream payment methods or outdated systems may lead to non-compliance.
- Incorrect classification of qualifying earnings or contractors could lead to underpayment.
- Poor STP reporting can flag non-compliance.
## Example Scenario
James runs a business paying fortnightly wages. From 1 July 2026, he must calculate SG contributions on both regular wages (OTE) and certain contractor payments. He must pay each payday and ensure those payments reach the nominated super funds within 7 business days. If he fails, he may face SG shortfalls and the SGC, plus administrative uplift charges under the ATO’s rules.
## Tips for Smooth Transition
- Test your payroll system well in advance of 1 July 2026.
- Download all data from SBSCH—past payments, employee fund info—before its closure.
- Liaise with superannuation funds to confirm fund details and payment deadlines.
- Seek professional tax or payroll advice to avoid errors.
- Monitor communications from the ATO; draft rulings (e.g., LCR 2026/D3) provide guidance and transitional rules. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))