Compliance
How Australia’s New Payday Super Reform Impacts Employee Payments
From 1 July 2026, Australia's super contributions must be paid each payday rather than quarterly—what this means for employers and workers in practice.
By NomadicTax Research Team • 6 min read • August 18, 2026
## Overview of Payday Super Reform
Australia has introduced **Payday Super**, a reform coming into effect from **1 July 2026**, changing how superannuation guarantee (SG) contributions are paid: instead of quarterly payments, employers must pay SG **each payday**. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Changes Employers Need to Know
- **Qualifying Earnings (QE)**: The base for SG contributions becomes QE, a broader concept than ordinary time earnings (OTE), including OTE, payments to contractors primarily for their labour, salary-sacrificed amounts, and other remuneration types. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Timeliness**: SG must be received by the employee’s super fund within **7 business days** after each payday. Pay cycles and supplier delays need alignment. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Closure of SBSCH**: The Small Business Superannuation Clearing House (SBSCH) will **permanently close** as at 30 June 2026. Existing users must download records and select another compliant payment method. ([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))
- **Reporting**: STP reporting will be updated to include new codes to report QE, plus year-to-date qualifying earnings and super liability each pay period. Payroll software providers must prepare accordingly. ([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))
## Practical Implications for Employers
| Area | What You’ll Need to Do | Example |
|---|---|---|
| Payroll Processes | Update to divide pay cycles by paydays, ensure eligible payments flagged as QE | An employee with monthly pay: employer pays SG every month instead of every quarter |
| Cashflow Planning | Plan for more frequent outflows instead of large quarterly sums | Small business with 10 employees must send SG after each pay run rather than once per quarter |
| Software & Reporting Compliance | Ensure STP software supports new QE codes; process payments via SuperStream or alternatives | Update payroll system before 1 July so it can report the new code “Q” and handle SuperStream transfers |
## Benefits & Challenges
**Benefits:**
- Reduces risks for employers missing SG deadlines and incurring charges.
- Helps employees receive super earlier and reduces lag in receipt of funds.
- Improved transparency and traceability per pay period.
**Challenges:**
- Administrative burden of more frequent processing, especially for smaller employers.
- Cash flow adjustments required.
- Software and system changes, especially where older payroll systems aren’t easily updated.
## What Employees Should Know
- Employers must pay SG each payday, and funds must receive amounts within 7 business days.
- Paychecks should reflect how “qualifying earnings” are computed.
- Long-term, this reform improves when super is invested (reduces idle time), benefiting final balances.
## Action Checklist for Employers
1. Review and update payroll system or engage a provider that supports Payday Super.
2. Identify all payment types that count as QE and make sure they are properly coded.
3. Before 1 July 2026, download all SBSCH records and transition away safely. ([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))
4. Train staff in payroll and HR to understand changes in timing and reporting.
5. Communicate with workers so they understand timing and expected fund receipt.
Payday Super is a fundamental change in how super contributions are handled—and understanding its components will help ensure compliance and smooth transition.