What is Payday Super?
Payday Super is a new reform taking effect 1 July 2026, under which employers must pay employees’ superannuation at the same time as wages—each payday—instead of quarterly. It also includes a shift in calculations: super contributions will be based on qualifying earnings rather than just Ordinary Time Earnings (OTE). (community.ato.gov.au)
Key Dates and Deadlines
- 1 October 2025: No new users can register for the Small Business Superannuation Clearing House (SBSCH). (ato.gov.au)
- 30 June 2026: Last date to use the SBSCH for existing users; download all records by then. (ato.gov.au)
- 1 July 2026: Payday Super becomes law, including closure of SBSCH and weekly super contributions per pay period. (community.ato.gov.au)
What Employers Must Start Doing
- Switch from quarterly to pay‐period super payments for every eligible employee. Super must reach the fund within 7 business days after payday—leave processing time. (community.ato.gov.au)
- Adopt the concept of qualifying earnings—includes ordinary time earnings and possibly payments to contractors engaged primarily for labour. (community.ato.gov.au)
- Update Single Touch Payroll (STP) reporting to include year-to-date qualifying earnings and the employer’s super liability each payday. (community.ato.gov.au)
- Choose a suitable alternative to SBSCH—whether commercial clearing house, payroll software solution, or SuperStream service. (ato.gov.au)
Impact on Cash-Flow, Systems & Record Keeping
- Employers used to quarterly payments will need to adjust cash flow planning—smaller, more frequent super payments.
- Payroll and accounting software must be updated or configured to handle qualifying earnings and accurate reporting to avoid penalties.
- Secure storage and retrieval of employee super fund details become more critical; mistakes in fund destination or fund identifiers could delay payment and create liabilities.
Example Scenarios
- Small business (15 employees, turnover <$10 million): Currently using SBSCH, will need to find a new method by 1 July 2026—perhaps upgrade payroll system or use a commercial clearing house.
- Larger employer with fortnightly pay: Pay super every pay cycle, calculate using qualifying earnings including contractor payments where relevant, and file updated STP reports.
Employer Checklist Before 1 July 2026
- Designate or acquire payroll software that supports Marty of Payday Super changes.
- Audit your pay schedule to ensure super payments will correspond to each payday.
- Communicate changes to finance & payroll staff so payment timing and reporting obligations are clear.
- Gather all employee super fund details, verify accuracy under SuperStream and MVR standards.
- Download all SBSCH transaction history before closure, retain securely for audit and reference.
These changes under Payday Super mark a major shift in how superannuation is administered. Employers who prepare now will be well positioned come 1 July 2026.