Compliance
Getting Ready for ‘Payday Super’: What Employers Must Do Before 1 July 2026
Australia’s Payday Super reforms bring sweeping changes to how superannuation is calculated and paid—employers need to act now to align systems and avoid penalties.
By NomadicTax Research Team • 5-8 min read • May 16, 2026
## What is Payday Super?
From **1 July 2026**, Australia will change how the Super Guarantee (SG) is calculated and paid: super must be paid on **every payday**, not just quarterly; eligibility expands via a new definition called **Qualifying Earnings (QE)**, which includes Ordinary Time Earnings (OTE) and other payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Changes Employers Need to Know
| Change | What’s New | Implications for Employers |
|--------|-------------|---------------------------|
| Payment Frequency | SG must be paid **at the same time as salary and wages** | Payroll systems must be updated to process SG alongside wages for each pay period. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) |
| Qualifying Earnings | Includes OTE + other earnings components | Must adjust your payroll rules, collect data on bonuses, allowances, etc., to calculate SG correctly. |
| Payment Timing | Contributions must reach super fund within **7 business days** (unless extended timeframe for new hires) | Employers must ensure banking/payment instructions are clear; funds must arrive quickly. |
| Reporting & Codes | DSPs must add a new code “Q” in Single Touch Payroll (STP) for QE; revised validation & SuperStream standards apply | If your software doesn’t support the new code or validation rules, switch vendors or update systems now. |
| Allocation & Fund Validation | Super funds get 3 business days to allocate or return contributions; funds must be validated early | Employers should monitor funds’ details actively; validate via Fund Validation Service (FVS). |
## Action Plan for Employers & Payroll Providers
- Perform a payroll audit: **identify all earnings** that fall under QE and list all pay elements.
- Update payroll templates and STP software to include code *Q* and revised validation rules.
- Confirm payment workflows that allow for **7-business-day delivery** of super contributions and start allocating super immediately.
- Engage with your super fund(s): ensure they accept contributions under the new standard and that bank details are up to date.
- For businesses using Small Business Super Clearing House (SBSCH), transition to alternative methods by **30 June 2026**, when SBSCH will permanently close. ([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))
## Real-World Example
**ABC Café** pays wages fortnightly and bonus payments quarterly. Under Payday Super:
- ABC must include bonus payments (if part of “other payments”) when calculating QE.
- Super must be paid every fortnight, matching the pay cycle.
- Funds must reach the employee’s super fund within 7 business days.
- Any delay or incorrect fund details could lead to penalties under the SG Charge rules.
## Why It Matters
Failing to meet Payday Super requirements exposes employers to:
- Increased **SG Charge liabilities**, including interest and penalties.
- Reputational risk with employees and funds.
- Operational disruptions from updated reporting obligations.
**Bottom line:** align your payroll systems, update settings, validate funds and start practising Payday Super workflows well before 1 July 2026 to avoid scramble at the last minute. Ready, set, convert!