Compliance
How to Thrive with Australia’s Payday Super from 1 July 2026
Australia’s superannuation guarantee rules are shifting — starting 1 July 2026 employers must pay super on payday and meet faster processing timelines. Here’s what you need to know.
By NomadicTax Research Team • 5-8 min read • August 10, 2026
## What is Payday Super?
From **1 July 2026**, Australia’s “Payday Super” reforms will kick in. Under these changes, employers will no longer pay employee superannuation quarterly. Instead, contributions must be paid at the same time as salary or wages — i.e., **on payday**. The reforms also alter what payments qualify as earnings for super (called **qualifying earnings**) and tighten up when those contributions must reach super funds. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Changes Employers Must Know
- **Qualifying Earnings (QE):** This expands the definition to include ordinary time earnings, amounts sacrificed (e.g. salary sacrifice), and other payments. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
- **Payment Timing:** Contributions must be calculated as **12% of QE** and **paid on payday**. The super fund must receive them **within 7 business days**, though exceptions (like new employees) may apply. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Closing of SBSCH:** The Small Business Superannuation Clearing House (SBSCH) will close permanently on **30 June 2026**. Employers must plan to switch to an alternative 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 Requirements:** Single Touch Payroll (STP) reporting will require new codes to report QE, year-to-date qualifying earnings, and super liability each pay cycle. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## How It Impacts Employees and Small Business
### Employees
- More frequent super payments — aligned with payday
- Better protection: Employers must pay **on-time** contributions; late payments may trigger compliance action and charges.
### Small businesses
- Need to ensure payroll & software are ready to handle frequent payments and reporting
- Must switch from SBSCH to commercial clearing houses or compliant payroll software before 30 June 2026
- Adjust cash flow planning to accommodate more frequent super payouts
## Example Scenario
**Before 1 July 2026:**
A small café pays fortnightly wages but only makes super guarantee payments every quarter via SBSCH.
**After reforms:**
-now must calculate super (12% of QE) each payday,
-pay to the super fund within 7 business days after each payday,
-download records from SBSCH before 30 June,
-set up payroll or commercial clearing house for ongoing payments.
## Action Steps for Compliance
- Audit current payroll software: does it support QE and new STP reporting codes?
- Select an alternative payment route before SBSCH closes — commercial clearing house or payroll system with super payment features.
- Train payroll staff on determining QE, tracking due dates, test run STP reporting for the new categories.
- Communicate the changes internally, particularly if you have employees with unusual arrangements (contractors, salary sacrifice etc.)
These reforms are more than an administrative headache — they're a chance to align super payments with modern payroll practice, prevent mis-payment errors, and protect employee entitlements. By preparing early, businesses can make the transition smooth — and employees can get what they’re owed, when they expect it.