Compliance
Navigating Payday Super: What Australian Employers Must Do from 1 July 2026
From 1 July 2026, payday super shakes up employer obligations—super contributions shift from quarterly payments to pay-day payments, including qualifying earnings and stricter deadlines.
By NomadicTax Research Team • 5-8 min read • August 26, 2026
## What is Payday Super?
Payday Super refers to a major reform under the Superannuation Guarantee (SG) framework. From **1 July 2026**, employers must calculate and pay their employees’ super guarantee **on payday**, not quarterly, based on **qualifying earnings** (QE), and deliver the payment to the super fund **within 7 business days** after payday. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
This includes: ordinary time earnings, salary sacrifice amounts, and other payments that fall under the extended definition of employee—for example, certain independent contractors. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Changes and Timelines
| Change | What Changes | Effective Date |
|---|---|---|
| **Payment timing** | Instead of quarterly contributions, super must be paid at each payday and funds must **receive** the payments within 7 business days of payday. | From 1 July 2026 ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) |
| **Qualifying earnings** | All earnings included in QE, not just ordinary earnings. Limits and eligibility clarified via LCR rulings. | From 1 July 2026 ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) |
| **SBSCH closure** | The Small Business Superannuation Clearing House (SBSCH) closes. Employers must move to alternatives. | Closed permanently since 1 July 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)) |
| **Reporting in STP** | From payday, employers must report both **qualifying earnings** and **super liabilities** in Single Touch Payroll (STP). | From 1 July 2026 ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) |
## What Employers Need to Do Now
1. **Review payroll systems and software**
• Ensure payroll or DSP software supports the new QE code and super liability fields in STP.
• Confirm your software can process payments to super funds within 7 business days and handle fund validation. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
2. **Switch from SBSCH if used**
• If you used the SBSCH, select an alternative method now—using commercial clearing houses or payroll-based super payment functions.
• Download your transaction history prior to its permanent closure. ([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))
3. **Train your payroll, accounting, and HR teams**
• Establish internal processes around payday calculations, identifying qualifying earnings components, and monitoring funds’ receipt.
• Keep copies of pay-day-by-pay-day super payment schedules.
4. **Communicate with employees**
• Make sure staff understand any changes in how and when their super is paid.
5. **Monitor compliance and possible shortfalls**
• Be aware of penalties via the **Super Guarantee Charge (SGC)** if payments aren’t made on time or are misreported. Draft law companion rulings provide worked examples showing base and final shortfalls. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
## Practical Example
Suppose **Zara Work Co** pays her employees **fortnightly**, with salaries including ordinary earnings and a commission that’s part of qualifying earnings. Payday is **Friday 15 August 2026**. Zara’s payroll must:
- Calculate 12% of all qualifying earnings paid on that day.
- Pay this amount to the relevant super fund so the fund **receives** it by **7 business days** after payday—i.e. no later than **Friday, 26 August 2026** (assuming no public holidays).
- Report both the qualifying earnings and super liability via STP in the same pay run.
Failure to comply could expose Zara to the SGC, including **interest charges and penalties**.
## Why It Matters
- **Cashflow implications**, especially for small businesses: frequent super payments demand stronger cash flow management.
- **Administrative changes**, including software whole-system readiness and retraining staff.
- **Lower risk for employees**: more timely super payments should reduce instances of underpayment or delays.
## Action Plan Checklist Before 1 July 2026
- [ ] Confirm payroll software update for Payday Super
- [ ] Choose and test alternative to SBSCH
- [ ] Update internal policies for QE calculation
- [ ] Communicate changes with team and employees
- [ ] Review ACH and payment platforms for timely payment capability
- [ ] Monitor first few paydays closely and review SGC exposure
Employers who prepare early will find the transition smoother and protect themselves from the compliance risks of getting Payday Super wrong.