Compliance

How Payroll Teams Should Prepare for Payday Super from 1 July 2026

A major shift in how superannuation is paid and reported begins on 1 July 2026 – here’s what every employer needs to know to stay compliant with Australia’s new Payroll and Super reforms.

By NomadicTax Research Team • 5-8 min read • June 14, 2026

## Overview From **1 July 2026**, Australia will transition to *Payday Super*. Employers will no longer make super contributions quarterly but must now pay for each pay event. Payment deadlines will become quicker, and reporting obligations more detailed. This shift is designed to improve compliance and protect employees' retirement savings. ([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)) ## What is Payday Super? - Employers must pay super based on **qualifying earnings (QE)** – which includes Ordinary Time Earnings and certain contractor labour payments. ([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)) - Super contributions must reach the employee’s super fund within **7 business days after 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)) - All employers must report **QE** and their **Super Guarantee liability** for each pay event via **Single Touch Payroll (STP)**. ([affinitypayroll.com](https://www.affinitypayroll.com/resources/compliance/pay-day-super-july-2026/?utm_source=openai)) ## Key Changes and Impacts - The **Small Business Superannuation Clearing House (SBSCH)** will **close permanently** from **1 July 2026**. Employers using it must move to alternative systems before then. ([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)) - June 2026’s super contributions still follow quarterly rules; final quarterly payment for Q4 2025-26 is due **28 July 2026 **. After that, the Payday Super rules apply fully. ([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 Steps for Employers - **Review Payroll Systems:** Ensure your software can track QE and report accurately through STP for each pay cycle. - **Cash Flow Planning:** More frequent super payments mean timing matters more. Funds must be available soon after each payday. - **Vendor and Clearing House Checks:** Identify reliable clearing houses or services that comply with the 7-day requirement. - **Train HR and Payroll Staff:** Clarify definitions like Qualifying Earnings vs Ordinary Time Earnings, and how they affect super and STP reporting. ## Example Scenario **Current system (quarterly):** Employer pays wage on **30 June** and contributes super by **28 July**, reporting only at quarter end. **From 1 July 2026 (Payday Super):** Wage paid **30 June** with super contributions due within 7 business days after payday; STP reporting includes QE and liability for that pay event. The quarterly obligation is replaced by per-pay contributions and reporting. ## Why It Matters - **For Employees:** Faster access to super means delays or gaps are less likely. - **For Employers:** Greater compliance risk – missing deadline or underreporting can lead to penalties and scrutiny. - **Overall Tax System:** More transparency, more consistent data, faster detection of unpaid super. --- **Category:** Compliance **Actionable Takeaways:** - Audit current payroll and super processes today. - Align all pay items to accurately reflect Qualifying Earnings. - Ensure cash reserves can meet frequent super payments. - Engage software or payroll vendors to confirm compliance.