Compliance
How Payday Super is Changing Employer Obligations from July 2026
Employers in Australia face a fundamental shift from quarterly to per-pay-period super payments under Payday Super, plus stricter reporting requirements and closing of the SBSCH.
By NomadicTax Research Team • 5-8 min read • July 29, 2026
## What is Payday Super?
From **1 July 2026**, the Australian Government will implement the **Payday Super reforms**. Under this law, employers will switch from making superannuation payments quarterly to paying super **each payday**. Super guarantee contributions must be based on “qualifying earnings”—a broader concept including Ordinary Time Earnings (OTE) and some contractor payments. Payments will have to reach employees’ super funds **within 7 business days after each payday**. ([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))
The **Small Business Superannuation Clearing House (SBSCH)** will close on 1 July 2026. If you’re using it, you must choose an alternative method, move early, and **download your records before the service shuts**. ([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))
## Practical implications for employers
- Review your payroll software now to ensure it can map **qualifying earnings** and meet more frequent payment cycles.
- Check if contractors fall under qualifying earnings—improper classification can lead to liabilities.
- Plan cash flow: more frequent payments mean smaller, more frequent transfers.
- Download all SBSCH records before 30 June 2026. After that, they’re no longer accessible. ([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))
## Case example
Imagine a small café employing two staff paid weekly. Previously they paid their super quarterly. Under the new rule, they must calculate super every payday, e.g. weekly, and ensure funds are in the correct super fund within 7 business days. If their payday is Monday, the super payment must reach by Wednesday the following week (assuming no public holidays).
## Compliance risks and action points
- Use STP-enabled payroll software that supports reporting **year-to-date qualifying earnings** and super liability each payday. ([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))
- Establish processes to handle late payments or errors; initial compliance action is expected to accommodate genuine efforts during the transition. ([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))
- For the final quarter of 2025-26, follow quarterly rules and meet the 28 July 2026 payment deadline. After that, ensure your payday super payments are up-to-date. ([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))
## Key takeaway for employers
To be ready for 1 July 2026:
1. Audit your payroll and finance systems to ensure support for payday super and reporting obligations.
2. Choose a SuperStream-compliant payment service if you were using the SBSCH.
3. Train staff or outsource tasks like STP reporting to ensure accurate mapping of earnings categories.
4. Communicate with employees about timing—cash flow may shift and employees expect consistent contribution payments.
These reforms reinforce the importance of timeliness, accuracy and transparency in superannuation obligations—ensuring better protection for employees and a clearer compliance landscape for employers.