Compliance

Navigating Australia’s Payday Super Reform: Employers’ Super Obligations From 1 July 2026

Australia is shifting from quarterly superannuation payments to super paid each payday—this article breaks down what employers need to do now to stay compliant.

By NomadicTax Research Team • 5-8 min read • July 11, 2026

## What has changed? Australia will introduce the **Payday Super** system starting **1 July 2026**. Instead of paying superannuation quarterly, employers must pay super every payday. Relatedly, the **Small Business Superannuation Clearing House (SBSCH)** will permanently close from that date. ([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)) ## Key requirements for employers - Calculate super on **qualifying earnings**: This includes ordinary time earnings (OTE) plus payments made to contractors engaged primarily for their labour. ([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)) - Pay super **within 7 business days** after each payday. Ensure payroll and clearing house workflows can support this timing. ([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)) - Transition from SBSCH: Before 1 July 2026, employers must select and move to an alternative payment method and download all records from the SBSCH. ([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)) - Update Single Touch Payroll (STP) reporting: STP must include year-to-date qualifying earnings and super liabilities each payday. This begins from the reform launch date. ([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)) ## Why this matters—impact & examples - **Cash flow implications**: Employers who previously budgeted for quarterly payments will need to plan for smaller, more frequent payments. Example: If payroll was every two weeks, previously super was caused by quarterly lumps; under Payday Super, every pay cycle has a super liability due within 7 business days. - **Software and operational changes**: Payroll systems must properly map OTE and contractor labour payments to super liability codes. Example: A business with weekly pay cycles should test STP submissions so that the super liability fields reflect cumulative qualifying earnings correctly. - **SBSCH closure** gives no more leniency past 30 June 2026. Employers using SBSCH must switch now to avoid missing deadlines. ([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)) ## Actionable steps employers should take now 1. **Assess your payroll frequency**—ensure you know when paydays fall and build schedules to meet 7-day submission deadlines. 2. **Check your payroll system**—confirm it supports issuing STP certificates per pay period with qualifying earnings and super liability properly tracked. 3. **Choose a new super payment provider or method** if you’re using SBSCH. Look into payroll vendors, commercial clearing houses, or alternative SuperStream-compliant methods. ([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)) 4. **Communicate with staff**, especially contractors if engaged mainly for labour, so they understand changes to qualifying earnings and payment timing. ## Summary Under Australia’s new Payday Super regime from 1 July 2026, employers face significant changes in how often and how quickly they pay and report superannuation. Getting processes, systems, and cash flow ready now avoids penalties later. This reform affects all employers, especially small businesses transitioning away from the SBSCH.