Compliance
How to Navigate Payday Super: What Employers and Employees Need to Know Before 1 July 2026
The Payday Super reforms will reshape how super guarantee contributions are made in Australia—it’s crucial for both employers and employees to understand the new timing, obligations, and risks.
By NomadicTax Research Team • 5-8 min read • August 11, 2026
## What is Payday Super?
From **1 July 2026**, the Australian Government’s *Payday Super* reforms will require employers to pay Superannuation Guarantee (SG) contributions at the same time as salary and wages (i.e. on payday), rather than quarterly. This shift is designed to ensure workers see contributions sooner and to reduce the incidence of unpaid or underpaid super. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
### Key changes for employers
- Calculate SG using a newly defined term: **qualifying earnings (QE)**, which includes ordinary time earnings, salary sacrifice contributions, and other relevant payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Super contributions must be **received by the nominated superannuation fund within 7 business days** of payday (with limited exceptions, such as for new employees or extraordinary circumstances). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- The **Small Business Superannuation Clearing House (SBSCH)** will close permanently on **1 July 2026**. Existing users must transition to alternative methods of payment and must download any required records before it 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))
### What this means for employees
- Earnings will start accruing super contributions more promptly, which means **sooner growth through compounding**, especially for those with frequent or irregular income cycles.
- Better visibility: Employers and the ATO are updating reporting and software requirements, including changes to STP (Single Touch Payroll) systems to report QE under a new code. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- For new parents: The new *Paid Parental Leave Superannuation Contribution (PPLSC)* kicks in for leave paid or adopted on or after **1 July 2025**, with the actual super payment from the ATO beginning **1 July 2026**. Contributions will be calculated using the SG rate, helping reduce super gaps for those who take leave. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-bc598107-7819-44fd-a84c-9ded73fe60b1?utm_source=openai))
## Compliance and transitioning: what to do now
| Step | Action | Why it matters |
|-----|--------|----------------|
| 1 | Review payroll processes: Ensure your payroll software can calculate QE and produce contributions aligned with payday. | To avoid errors or late payments under the new framework. |
| 2 | Engage with your super fund(s): Confirm they can receive and allocate contributions within 7 business days. | Timely receipt avoids SG Charge and penalties. |
| 3 | Plan for the end of the SBSCH service: for small employers relying on the ATO clearing house, identify and migrate to an alternative. | To avoid disruptions from 1 July 2026. |
| 4 | For employees on parental leave: determine your nominated super account and check eligibility to receive the PPLSC. | Maximise entitlement and ensure correct allocation. |
## Practical example
Sarah is a casual retail worker who is paid weekly and has both salary for ordinary hours plus commission payments. Under Payday Super, Sarah’s employer will calculate SG contributions on all those amounts (i.e. all ‘qualifying earnings’), and make contributions each payday, ensuring Sarah’s super fund receives them within 7 business days. This replaces previously making one lump quarterly payment.
Without aligning systems now, the employer risks non-compliance or penalties. Sarah, meanwhile, benefits from seeing super contributions compounding sooner and more regularly.
## Final thoughts
Payday Super represents a significant change, especially for small businesses. Strong planning now will help avoid compliance risk, cash flow surprises, or unintended penalties. Employers should think through both technical systems and workforce communication to succeed under the new regime.