Compliance
Navigating 'Payday Super' and Super on Parental Leave: What Australian Employers Must Do
Learn how Australia’s upcoming Payday Super reforms and super contributions on parental leave will change employer obligations from 1 July 2026—and how to prepare.
By NomadicTax Research Team • 6 min read • April 17, 2026
## What is Payday Super?
**Payday Super** is a major reform requiring that employers pay super guarantee (SG) contributions **together with salary and wages** from **1 July 2026**. ([ato.gov.au](https://www.ato.gov.au/about-ato/new-legislation/in-detail/superannuation/payday-superannuation?utm_source=openai)) These payments must reach the employee’s super fund within **7 calendar days** of payday. Late payments will trigger the updated SG charge. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-baed6efd-6b36-42ef-b9f4-233bc2979365?utm_source=openai))
## Super on Government-Funded Parental Leave
From the same date—**1 July 2026**—government-funded parental leave payments will include super contributions at the legislated SG rate (currently 12%) and count toward an individual’s concessional contributions cap. These will be treated like regular super contributions and taxed at 15% within the fund. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-bc598107-7819-44fd-a84c-9ded73fe60b1?utm_source=openai))
## For Employers: Key Compliance Requirements
- Align payroll cycles so SG contributions are made every payday, not quarterly or later.
- Ensure SG contributions funds are delivered within **7 days** post-payday. Late payments may attract the SG charge, though some administrative uplift factors are being designed. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-baed6efd-6b36-42ef-b9f4-233bc2979365?utm_source=openai))
- Begin reporting both **Ordinary Time Earnings (OTE)** and **Total Super Liability** fields through Single Touch Payroll (STP). SuperStream standards will also be revised; payments may need to flow via the New Payments Platform (NPP) for speed. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-baed6efd-6b36-42ef-b9f4-233bc2979365?utm_source=openai))
## Examples
**Small Retail Business (Sue’s Boutique):** Sue pays her staff weekly. Under the new rules, she must send super contributions ***within 7 calendar days*** of each pay cycle when the wages hit the employees’ bank or pay account. Delayed payments risk the updated SG charge.
**Parent returning to work (Alexandra):** Receives government-funded parental leave; from July, she gets super contributions on that leave. Those contributions will eat into her concessional cap; she must monitor total super contributions to avoid exceeding the limit.
## Action Plan for Employers
1. Review payroll and superannuation process flow now—identify who handles SG payments, timing, and systems.
2. Update software or payroll provider contracts to ensure STP reporting captures OTE and liability fields as required.
3. Inform HR/payroll teams about the 7-day payment window and plan for compliance checks.
4. Plan communication to employees, especially those on parental leave, to explain how super will now apply to leave payments.
## Risks of Non-Compliance
- Potential for updated SG charges with penalties.
- Increased audit exposure by ATO, particularly given sharper data matching and compliance efforts.
- Employee dissatisfaction or disputes if super isn’t paid properly or on time.
**Bottom line:** Payday Super and the new parental leave super contributions reshape employer responsibilities from **1 July 2026**. Don’t wait—revise processes, upgrade systems, and train staff now to avoid non-compliance issues later.