What is Payday Super?
From 1 July 2026, Australia’s superannuation guarantee system enters a new era: employers must pay super contributions each payday, not quarterly. These contributions include all qualifying earnings (ordinary time earnings, salary sacrifice amounts, and other payments), and must reach the employee’s super fund within 7 business days after payday, unless an extended timeframe applies. (softwaredevelopers.ato.gov.au)
Key Changes and Transition Rules
| Change | Previous Rule | New Rule (from 1 July 2026) |
|---|---|---|
| Payment Frequency | Quarter-end (e.g. by 28 July for Apr-Jun quarter) | Each payday, with contributions received by the fund within 7 business days of payday (community.ato.gov.au) |
| Calculation Base | Ordinary Time Earnings (OTE) | Qualifying earnings – broader scope including certain bonuses, commissions, remuneration under expanded rules (softwaredevelopers.ato.gov.au) |
| Reporting | SG liability reported quarterly | STP (Single Touch Payroll) to include year-to-date qualifying earnings and liability per pay period (community.ato.gov.au) |
| Small Business Super Clearing House (SBSCH) | Available for small employers | Closed permanently from 1 July 2026 (ato.gov.au) |
What Employers Need to Do Now
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Check payroll software and service providers
- Ensure your system supports: calculation of qualifying earnings, faster payments (SuperStream enhancements), fund verification, and STP changes. (softwaredevelopers.ato.gov.au)
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Switch from SBSCH
- If you currently use the Small Business Superannuation Clearing House, you must adopt alternative SuperStream-compliant payment methods before it closes on 30 June 2026. Download your records and transition early. (ato.gov.au)
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Plan for multiple super payments during July 2026
- You’ll have your final quarterly payment due under the old system, and your first payday contributions under Payday Super. Payments received between 1-28 July will be allocated first to cover outstanding quarterly amounts. From 29 July, only toward Payday Super obligations. (community.ato.gov.au)
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Ensure compliance with reporting obligations
- Update STP reporting to include qualifying earnings and super liability each payday. Even if your software isn’t ready immediately, start as soon as possible. (softwaredevelopers.ato.gov.au)
Risks and First-Year Compliance
- Late payments or mis-allocation could trigger the Super Guarantee Charge (SGC), which includes penalties and interest. (softwaredevelopers.ato.gov.au)
- A new first-year compliance approach is in place, giving some flexibility and guidance from the ATO to help employers transition. (softwaredevelopers.ato.gov.au)
Actionable Checklist
- Ÿ Before 30 June 2026: choose a SuperStream-compliant provider and switch off SBSCH.
- Test payroll systems to confirm they can compute qualifying earnings and send payments on payday.
- Train payroll and finance staff on new timing and allocation rules for payments.
- Schedule STP reporting changes, map out data required per pay period.
- Engage with software provider to confirm plans for supporting voluntary disclosure (for overdue or late payments) from 1 July 2027. (softwaredevelopers.ato.gov.au)
By acting now, employers can avoid costly mis-steps and ensure smooth compliance with Payday Super. The transition may be a challenge, but it promises a fairer, more prompt system for employees. Prepare early, update your systems, and ensure your payroll team is ready.