Compliance
Payday Super & Car Deductions: New Rules Employers and Employees Should Know
Major changes from 1 July 2026 mean employers must pay super on payday and employees trekking kilometres must adjust to a higher deductible rate.
By NomadicTax Research Team • 5-8 min read • August 19, 2026
## Payday Super: Employers’ New Obligations from 1 July 2026
Australia’s **Payday Super** reforms require employers to match superannuation contributions to paydays—not as quarterly aggregates. Key changes:
- **Qualifying Earnings (QE)** combines ordinary hours and certain other payments. The super guarantee of **12%** now applies to QE and must be *paid and received* by super funds within **7 business days** after each payday. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Systems & Reporting Adjustments**: Employers must use updated payroll software, report QE under new code “Q” via Single Touch Payroll (STP), and ensure funds validate member and fund details. SuperStream standards are updated to allow near-real-time payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- **Small Business Superannuation Clearing House (SBSCH)** has closed as of 1 July 2026. Small employers that used the Clearing House must switch to alternate payment mechanisms. ([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))
## Car Expense Deductions: 91 Cents per Kilometre for 2026-27
- From **1 July 2026 to 30 June 2027**, if using the **cents-per-kilometre method** to claim work-related car expenses, the rate is **91 cents per kilometre**, which includes a one-off uplift of 2 cents over base 89 cents. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/CentsperKilometreDeductionRateforCarExpenses?utm_source=openai))
- This rate is used only for eligible taxpayers who **elect this method**; you can’t retroactively switch. Keep a **logbook** or records if it's not applicable. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/CentsperKilometreDeductionRateforCarExpenses?utm_source=openai))
## Changes for Parents: Superannuation on Government-Funded Parental Leave Pay
- From the 2026-27 financial year, eligible parents will receive a superannuation guarantee-rate contribution (12% or whatever is legislated) on Government-funded **Parental Leave Pay**, paid by ATO. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-bc598107-7819-44fd-a84c-9ded73fe60b1?utm_source=openai))
- It will be treated as **concessional contributions**, count towards the concessional cap in the year received, taxed 15% in fund. Lump-sum payment happens at end of financial year. ([ato.gov.au](https://www.ato.gov.au/api/public/content/0-bc598107-7819-44fd-a84c-9ded73fe60b1?utm_source=openai))
## Compliance Tips for Employers and Employees
- Employers: update payroll bylaws, ensure STP systems map to new QE code; align payment cycles; verify details with funds; establish fund validation mechanisms.
- Employees: make sure super funds have correct details; nominate your preferred fund; confirm contributions are received.
- Recordkeeping: For car claims, ensure accurate logs; for parental leave super, keep pay notices and confirmation from Services Australia & ATO; track concessional cap usage to avoid penalties like Division 293 if you’re high-income.
New from 1 July 2026, these shifts require both employers and employees to adapt fast. Compliance is not just about paying—it’s about ensuring systems and records reflect fresh legal obligations.