Payday Super: Key Dates and Obligations
From 1 July 2026, employers must align super contributions with payroll: super must be paid at the same time as salary or wages, and funds need to reach superannuation funds within 7 calendar days of payday. Failure to comply may result in liability for the updated Super Guarantee Charge (SGC). (ato.gov.au)
The existing Small Business Superannuation Clearing House (SBSCH) will be retired effective 1 July 2026. Small businesses currently using this service will need to transition to alternative clearing house solutions before that date. (ato.gov.au)
Major Changes to Super Guarantee Assessment
- Ordinary Time Earnings (OTE) will be used instead of salary and wages to calculate the super guarantee shortfall.
- Nominal interest is replaced with notional earnings, calculated from when super contributions were required to be paid.
- The administration fee in the SGC will be replaced by an administration uplift of 60% on the shortfall amount. However, if employers voluntarily disclose mistakes to the ATO, the uplift may be reduced.
- Importantly, the SGC will become tax deductible, though General Interest Charge (GIC) on the SGC will not be. A new penalty will be imposed if assessed SGC amounts aren’t paid to the ATO in a timely manner. (ato.gov.au)
What Small Businesses Need to Do Now
- Audit your payroll and super systems: Ensure they calculate OTE correctly, and that you have systems in place to pay super plans promptly.
- Select new clearing house: If reliant on SBSCH, transition to commercial alternatives.
- Educate payroll staff: Make sure payroll, HR, and finance teams understand the 7-day requirement and eligibility definitions.
- Update your software: SuperStream, payroll and accounting systems must support the more frequent allocation and faster processing of contributions.
Examples
- Example 1: A business pays weekly wages. Under the new rule, super contributions linked to those wages must be paid and received by the fund within 7 calendar days of each payday. Late payments may lead to SGC liability.
- Example 2: A small employer currently using the SBSCH must find an alternative clearing house provider or service, especially before 1 July 2026 so contributions and reports aren’t disrupted.
Implications for Payroll & Financial Planning
- Cash flow planning will become more critical, since employers will need funds ready on each payday for super contributions.
- Employers may incur additional administrative burden. Those who voluntarily disclose errors may mitigate some penalties.
- Accurate categorisation of OTE will be essential (miscalculations could trigger unexpected liabilities).
Summary
| Action | Deadline | Purpose |
|---|---|---|
| Review payroll systems & OTE definitions | Before 1 July 2026 | Proper shortfall calculation |
| Transition clearing house provider | Prior to SBSCH closure | Avoid service disruptions |
| Train staff across payroll & finance | Soon | Ensure readiness |
| Update payments & reporting workflows | Before change takes effect | Comply with new rules |
Payday Super represents a significant shift in how super contributions are managed. For many employers, especially small to medium enterprises, the lead-up period is the key to smooth compliance and avoiding penalties.