Compliance
Navigating Payday Super From 1 July 2026: What Employers Must Know
With the arrival of Payday Super in Australia, employers will move from quarterly to per-paycheck super payments—with major changes in qualifying earnings, reporting, and compliance obligations.
By NomadicTax Research Team • 5-8 min read • July 9, 2026
## What is Payday Super?
From **1 July 2026**, Australia’s superannuation guarantee (SG) framework undergoes a major reform called **Payday Super**. Rather than making SG payments quarterly, employers will now need to:
- Calculate super as **12% of an employee’s qualifying earnings (QE)**, which includes ordinary time earnings, salary sacrifice contributions, and some other payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Make super payments so they **reach the super fund within 7 business days after payday**, unless special extended timing applies (e.g., for new employees). ([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 Dates to Know
| Date | Event |
|---|---|
| 1 July 2026 | Payday Super comes into effect—employers must update their practices. ([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)) |
| 30 June 2026 | The Small Business Superannuation Clearing House (SBSCH) closes permanently. Employers using it must move away by this date. ([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 & Software Implications
- STP2 reporting will now require **QE amounts** and **super liability** to be reported for each payday—no longer acceptable to only report super liability. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo0000059017/p00420494?utm_source=openai))
- Payroll software and digital service providers must be updated to handle daily SG payment timing, calculations, and fund delivery deadlines. Testing and validation processes are underway. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/DARG20260421?utm_source=openai))
## Who Is Affected?
- All employers, including those paying contractors who are “engaged primarily for their labour,” will now have to treat them as employees for SG purposes if their payments are included as qualifying earnings. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Super funds affect all employees, temporary workers, and those who previously might have had delays in SG processing. Employers must ensure all contributions and reporting deadlines are met to avoid penalties. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
## Practical Transition Tips
- **Audit your payroll systems now**: check if your pay codes and software can identify qualifying earnings by payday. Update mapping where needed.
- **Download records from SBSCH before its closure**: all data must be preserved before it shuts down at the end of June 2026. ([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))
- **Check your cash flow projections**: under the new regime, some months will require both the old quarterly and first few pay-interval SG payments. Prepare budgeting accordingly. ([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))
- **Train payroll and HR staff**: errors in reporting or late payments will incur SG charge liabilities. Ensure clear understanding of “QE day,” “on-time contributions,” and other new terms.
## Examples to Illustrate
- *Example A:* Amy is paid every Friday. Under Payday Super, her employer calculates 12% of her qualifying earnings every Friday, and sends the SG payment so it reaches her chosen super fund within 7 business days of that Friday.
- *Example B:* A contractor is paid through Accounts Payable monthly. From 1 July, the payment must be included on payday, with qualifying earnings and super liability reported in STP2. Payment must reach super fund within 7 business days. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo0000059017/p00420494?utm_source=openai))
## Compliance Risks and Penalties
Failing to comply with Payday Super means exposure to the **Superannuation Guarantee Charge (SGC)**, late payment penalties, administrative uplifts, and choice loading. Draft rulings such as **LCR 2026/D3** provide guidance on calculating shortfalls. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
By getting systems and reporting ready **before** 1 July 2026, employers can avoid costly penalties and disruptions.