Compliance
Payday Super from 1 July 2026: What employers need to prepare now
From 1 July 2026, Australia’s Super guarantee moves from quarterly payments to Payday Super—a big compliance shift for employers.
By NomadicTax Research Team • 5-8 min read • July 27, 2026
## What is Payday Super?
Payday Super is the new regime under which employers will be **required to pay superannuation contributions each payday**, instead of quarterly. The reform begins on **1 July 2026**.([business.gov.au](https://business.gov.au/news/changes-for-businesses-from-1-july-2026?utm_source=openai)) Under Payday Super, super must reach employees’ super funds within **7 business days after 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)) It introduces new reporting obligations: employers will need to include **qualifying earnings** and **super liability** in each Single Touch Payroll (STP) report.([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)) The Small Business Superannuation Clearing House (SBSCH) will permanently close from this date.([business.gov.au](https://business.gov.au/news/changes-for-businesses-from-1-july-2026?utm_source=openai))
## Who is affected and what to check
- **All employers**: regardless of size, you’ll need to adjust payroll and payment systems to meet payday frequency.
- Employers currently using SBSCH: start transitioning before 1 July 2026. Download your records; find a SuperStream-compliant alternative.([business.gov.au](https://business.gov.au/news/changes-for-businesses-from-1-july-2026?utm_source=openai))
## Steps to prepare
1. **Review payroll systems and STP software**
- Check if your pay codes are correctly mapped to identify qualifying earnings.
- Ensure STP software can handle reporting super liability every payday.
- Test updates ahead of first pay run after 1 July.
2. **Plan cash flow impacts**
- More frequent super payments may strain cash flow early on; forecast liability.
3. **Choose alternative to SBSCH**
- Many payroll providers include SuperStream functionality.
- Use SuperStream-compliant products; check the SuperStream Product Register.
4. **Get employee communication ready**
- Inform your staff about what qualifies as earnings, when super reaches their fund, and how their reports will show up.
5. **Understand legal and tax implications**
- Super contributions remain tax deductible. Late payments or SG charge may apply if you miss deadlines.([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
Imagine *GreenTech Pty Ltd* which pays staff on a fortnightly basis and currently pays super quarterly. Under Payday Super:
- Each pay run they must identify and calculate qualifying earnings per employee.
- After payday, within **7 business days**, pay the calculated super contribution to staff funds.
- Also, report via STP: employee’s YTD qualifying earnings and super liability. If systems aren’t updated, they could miss or misassign funds, incurring penalties.
## Key pitfalls and how to avoid them
- **Mixing payment types**: if employees get extra payments (overtime, bonuses), ensure those parts that are qualifying earnings are properly captured.
- **Software or bank delays**: payments and validation via SuperStream must work smoothly. Processing delays may cause you to miss due dates.
- **Don’t rely on old behaviours**: closing out SBSCH, eliminating quarterly contributions means legacy practices will no longer be acceptable.
## Benefits for employers and employees
- Improved retirement savings outcomes with more regular contributions.
- Better transparency via regular statements and reporting.
- Employers with compliant systems may gaining reputational trust and reduced friction in audits.
**Bottom line:** Payday Super is a big compliance shift. Employers who act early—upgrade software, train payroll staff, plan cash flow—will avoid headaches and ensure smooth transition.