Compliance
Employer Obligations Under Payday Super: Transition Checklist & Compliance Guide
With Payday Super kicking in from 1 July 2026, employers need to adjust payroll, reporting and operational workflows to avoid penalties — here’s your compliance roadmap.
By NomadicTax Research Team • 5-8 min read • August 16, 2026
## What is Payday Super?
“**Payday Super**” is a reform changing how and when super guarantee (SG) contributions are calculated and paid. From **1 July 2026**, employers must pay SG **on each payday**, rather than quarterly. Under the new rules:
- SG is calculated at **12% of qualifying earnings** (a broader base that includes certain contractor payments as well as ordinary time earnings). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Contributions must be **received** by super funds **within 7 business days** after payday (subject to some extended timeframes for specific situations). ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-890427aa-e10d-4adf-a835-0118beafec75?utm_source=openai))
- The Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Employers must transition to alternative payment methods. ([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?%3Fs%2Fpage%2F32%2Fpage%2F2%2F=&s=&s%2Fpage%2F32%2F=&s%2Fpage%2F32%2Fpage%2F5%2F=&s%2Fpage%2F32%2Fpage%2F622%2F=&s%2Fpage%2F9%2Fpage%2F47%2F=&s%2Fpage%2F9%2Fpage%2F582%2F=&utm_source=openai))
## Compliance Checklist for Employers
| Area | What needs to change | Deadline / Key Considerations |
|------|------------------------|-------------------------------|
| Payroll system updates | Ensure ability to calculate **qualifying earnings** for all employees (including contractors primarily engaged for labour) and pay SG every payday. | Before first payday after 1 July 2026. System testing and staff training required. |
| Reporting via STP | Add new STP labels to include year-to-date qualifying earnings and SG liability. | STP product providers to update before 1 July 2026; employers verify label mapping and data flows. |
| Payment timing | Contributions must reach super funds within 7 business days post-payday; leave buffer time for validation and errors. | Employers should plan payroll cycles and cashflows accordingly. |
| Transition from SBSCH | Download historic records, choose a new payment process, ensure funds and identifiers are correct. | Effective from 1 July 2026; final SBSCH payment due 28 July 2026 for the June quarter. ([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)) |
| Penalties and SG charge risk | Understand risk of shortfalls; new draft rulings (LCR 2026 series) set out how administrative uplifts will apply; voluntary disclosure reduces penalties. | Understand by mid-2026; review exposures and possibly adjust practices. |
## Real World Example
- *ABC Café* currently pays super quarterly. They have employees paid weekly. After 1 July 2026 each weekly pay requires SG calculated on qualifying earnings and paid within 7 business days. Their payroll software must support tracking these earnings, possibly including contractor payments.
- *XYZ Digital* uses SBSCH but must transition away. They need to ensure correct fund information (USIs), and validate super fund details with employees to avoid misallocation.
## Actionable Advice
- Audit all payments classified as wages or similar (contractor vs employee) to ensure you meet qualifying earnings definition.
- Update payroll software and test for edge cases: split pay-days, backpay, bonuses.
- Engage with DSPs (digital service providers) early to ensure STP updates and fund validation service functionality are correct.
- Inform employees of changes, especially in payment timing and how super contributions will work.
**Key takeaway:**
Payday Super represents one of the biggest changes to employer super obligations in years. With the right systems, clear definitions and good cashflow management, compliance is achievable — missteps may lead to SG charges or penalties.