What Is Payday Super?
Australia’s Payday Super reforms, effective from 1 July 2026, change both when and how employers calculate and pay superannuation guarantee (SG) contributions. (softwaredevelopers.ato.gov.au)
Key Changes Employers Should Know
- Calculation: SG contributions now use qualifying earnings (QE), which includes ordinary time earnings (OTE), commissions, salary sacrifice, and payments to independent contractors under the extended employee definition. (softwaredevelopers.ato.gov.au)
- Timing: Contributions must be paid on the payday and must be received by the super fund within 7 business days. (softwaredevelopers.ato.gov.au)
- Small Business Superannuation Clearing House (SBSCH): The clearing house is permanently closed from 1 July 2026. Employers must switch to alternative payment methods. (ato.gov.au)
Action Plan Before 1 July 2026
- Review payroll processes: Ensure your system captures QE properly and pays super to the correct funds.
- Update with digital service providers (DSPs): Your payroll or accounting software must be ready for the new reporting code “Q” for QE and support SuperStream updates. (softwaredevelopers.ato.gov.au)
- Choose or switch payment channels: After SBSCH closure, you must use compliant alternatives. (ato.gov.au)
- Communicate with staff and funds: Verify super fund details, especially in cases of fund mergers or closure. (softwaredevelopers.ato.gov.au)
Examples in Practice
- An employer paying fortnightly must now pay super every payday, not just every quarter.
- If an employee signs up with a new super fund, payments must reach the fund within the 7 business−day window post-payday.
Why This Matters
- Non-compliance risks trigger the Super Guarantee Charge, penalties, and reputational damage. (community.ato.gov.au)
- This reform aligns employer payroll frequency with super contributions, improves timeliness, and ensures employee entitlements are met.
Final Takeaways
- Start early: Test your payroll systems and DSP updates now.
- Document everything: Keep accurate QE records.
- Reach out for guidance: ATO has published draft rulings (e.g., LCR 2026/D3) to clarify how to calculate charges. (ato.gov.au)
In short: from 1 July 2026, super contributions must be calculated based on QE, paid on payday, and receive by funds within 7 business days. Get your systems, providers, and staff ready now.