Compliance
Compliance Under Payday Super: What Employers Need to Know Now
The Payday Super reforms came into force on 1 July 2026—closing the Small Business Super Clearing House, moving to payday contributions, and tightening reporting and SG charge rules.
By NomadicTax Research Team • 5-8 min read • August 25, 2026
## What is Payday Super?
'**Payday Super**' reforms overhaul when and how superannuation guarantee (SG) contributions are made and reported. From **1 July 2026**, super must generally be paid **each time** you pay employees—not quarterly. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
## Key Changes
- **Qualifying earnings (QE)** becomes the basis: covering ordinary time earnings, commissions, salary sacrifice, and more under an expanded definition of 'employee'. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
- **Payment deadline**: super contributions must be **received by the super fund within 7 business days** after the payday. Late contributions attract the Super Guarantee Charge (SGC). ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai))
- **SBSCH closure**: the Small Business Superannuation Clearing House is permanently closed from 1 July 2026. Employers must select alternative providers. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai))
- **Reporting via STP**: From each payday, report both the employees’ **year-to-date qualifying earnings and super liability**. This is embedded in Single Touch Payroll reporting. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai))
## Compliance Strategies
- **Review payroll systems**: Ensure they can track and report qualifying earnings and super liability per payday. Transition systems in places that still assume quarterly contributions.
- **Set up SuperStream-compliant alternatives**: With SBSCH closing, using compliant payroll software or commercial clearing houses is required. Download all records before closure. ([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))
- **Train managers/payroll staff** on what counts as qualifying earnings, what defines employee under expanded categories, and how new SG charge and administrative uplift can be triggered. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
## Impact and Risks
- If super is **not received within the 7-business-day window**, even if paid by employer, the SG charge may apply.
- Employers must avoid misclassifying workers, or ignoring non-traditional payments (commissions, salary sacrifice) as part of QE.
- Voluntary Disclosure Statements may mitigate administrative uplift or other penalties if disclosure is made early in specified windows. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
## Example Scenario
**XYZ Retail** pays weekly. Before 1 July, they paid super quarterly. From first pay day in July, they must pay super each time they pay staff. If payday is 15 July, and they pay on that day, they have until 7 business days later (say, 24 July) for the super to reach the fund. If they delay until 28 July, they’ll breach SG rules.
## Steps to Ensure Compliance
1. Audit current systems and workflows—mapping paydays, earnings types, reporting capabilities.
2. Engage software providers to implement STP changes for qualifying earnings reporting immediately.
3. Download SBSCH transactional records before 1 July if still using it.
4. Communicate changes with employees so that expectations (especially around super statements, liabilities) are clear.
**Key takeaway**: The shift to Payday Super is significant. Employers who get ahead of the transition—not just hoping the old way continues—will reduce risk and build trust with both employees and regulators.