Compliance
Payday Super: Employers’ Compliance Checklist Before 1 July 2026
From 1 July 2026, employers must pay superannuation on payday—learn what the new rules require and how to update payroll and reporting systems.
By NomadicTax Research Team • 5-8 min read • August 15, 2026
## What’s changing under Payday Super?
- **Pay cycle vs super payment timing**: Super contributions must now be made **each payday**, not quarterly. Employers must calculate contributions based on **Qualifying Earnings (QE)**. ([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))
- Payments must **reach super funds within 7 business days** of payday, unless exceptions apply (for example, for new employees or certain transitional arrangements). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- The **Small Business Superannuation Clearing House (SBSCH)** will permanently close on **1 July 2026**. Employers currently using SBSCH must switch to another payment method and download records before 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))
## Key definitions and reporting updates
- **Qualifying Earnings (QE)**: Includes ordinary time earnings (OTE) plus certain payments to contractors engaged primarily for their labour. Understand what is included in QE under your payroll. ([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))
- **Super guarantee charge and late payments**: Failing to meet new timings can lead to SG shortfall and penalties. Draft rulings (e.g. LCR 2026/D3) explain employer liability under the updated SG legislation. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
- **Reporting via Single Touch Payroll (STP)**: Extra fields are required—employers must report **year-to-date QE** and **super liability per employee** each payday. ([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))
## Action checklist for employers
| Task | When to complete | Why it matters |
|------|------------------|------------------|
| Audit payroll software | **ASAP** (before July 2026 pay cycle) | Needs to calculate QE, support frequent payments, reporting changes. |
| Identify alternate payment method to SBSCH | Before **30 June 2026** | SBSCH closes permanently; avoid late payments and record loss. |
| Train payroll and HR teams | Before implementation | Ensure correct calculation, avoid mis-classification of payments. |
| Communicate with employees | Mid-2026 | Employees need to know timing and process, especially contractors. |
| Review cashflow & payment schedules | Ongoing from mid-2026 | More frequent payments may impact cashflow. |
## Common pitfalls and how to avoid them
- **Misclassifying ‘ordinary time earnings’ or contractor payments**: Leads to underpayment of contributions
- **Not allowing lead time for payment clearance**: Super funds must receive payments within 7 days—payments submitted too late still contribute to SG charge risk
- **Delayed software updates**: STP reporting demands new codes; failure to update may cause missed or incorrect liability reporting
- **Leaving SBSCH records behind**: Historical records are crucial; must be downloaded before **30 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))
## Example timeline for small business
*April-June 2026*: last quarter under old system; calculate contributions for quarter due by **28 July 2026**. Beginning **1 July**, begin Payday Super obligations. **28 July 2026** also marks due date for quarterly contributions. After this date, super due per payday and processed through updated methods. ([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))
## Looking ahead
- Employers should keep informed of forthcoming **Law Companion Rulings** (LCRs) like LCR 2026/D1, D2, D3 and D4 which provide detailed guidance. ([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
- Engage early with your superannuation fund to ensure funds can accept contributions per new rules and handle the reporting. Funds will need to allocate or return contributions in **3 business days**. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
Payday Super represents a major compliance shift: updated frequency, tighter turnarounds, new definitions. With proper planning, employers can avoid penalties and smoother transitions.