What is Payday Super?
From 1 July 2026, Australia has enacted the Payday Super reforms under the Payday Superannuation Act 2025 and related legislation. Employers must now pay their employees’ Super Guarantee (SG) contributions at the same time wages or salary are paid, rather than quarterly. (softwaredevelopers.ato.gov.au)
Key Requirements for Employers
- Qualifying Earnings (QE): 12% of qualifying earnings—including ordinary time earnings (OTE), salary-sacrificed amounts, commissions and certain extended employee payments. (softwaredevelopers.ato.gov.au)
- Payment Timing: Contributions must be received by the super fund within 7 business days after each payday. Extended periods apply for new employees in some cases. (softwaredevelopers.ato.gov.au)
- Closing the Small Business Superannuation Clearing House (SBSCH): SBSCH closed on 1 July 2026. Businesses that used it must switch to an alternative payment method. (community.ato.gov.au)
- Reporting Standards: Employers must include year-to-date qualifying earnings and SG liability in Single Touch Payroll (STP) reporting each payday. Payroll systems and service providers must update to STP codes (code “Q”) for QE reporting. (community.ato.gov.au)
Transitional and Compliance Approach (First Year)
- For July 2026, employers may need to manage dual obligations: final quarterly SG payments (for the quarter ended 30 June 2026), and new Payday Super payments. (community.ato.gov.au)
- Compliance in the first year will be monitored; the ATO’s guidance indicates some tolerance for certain processing delays, especially during pay software transitions. (community.ato.gov.au)
Practical Examples
| Scenario | What employer must do under Payday Super |
|---|---|
| Weekly payroll | Employees paid every Friday; employer calculates 12% of qualifying earnings each Friday and ensure funds reach super fund within 7 business days following each Friday. |
| Commission and salary sacrifice | If an employee sacrifices salary for extra super, those salary sacrifice amounts are included in QE; SG is calculated accordingly. |
| New employee | For the first super contribution for a new employee, sometimes longer timeframe applies for fund to receive contribution—but SG must still be calculated on the QE day. (ato.gov.au) |
Actionable Insights for Employers
- Audit and update payroll software: Ensure the platform can calculate QE, generate new STP code “Q”, and manage per-pay-period super payments. |
- Select reliable payment channels: Must use SuperStream-compliant methods; many funds are ready to accept payments via the New Payments Platform (NPP). |
- Train payroll and HR staff: Important to understand timelines, new obligations, and implications for employee benefits. |
- Switch early from SBSCH: If you used the Small Business Superannuation Clearing House, find an alternative payment method before 1 July 2026. |
Risks of Non-Compliance
Failing to meet Payday Super obligations can lead to:
- Super Guarantee Charge (SGC) liabilities if payments aren’t received within prescribed periods; includes employer contributions, interest, and penalties. (ato.gov.au)
- Increased audit activity and potential reputational damage. |
Bottom line: Payday Super significantly changes how super must be handled—timing, reporting, and calculation. Employers who move proactively will avoid penalties, streamline processes, and deliver greater transparency and fairness to employees.