Compliance
Payday Super Is Here: What Employers Need to Do Now
Australia’s super guarantee system has transformed—employers must now pay super each payday with stricter timing and reporting rules.
By NomadicTax Research Team • 5-8 min read • September 2, 2026
## What Is Payday Super?👷♂️
Starting **1 July 2026**, the Australian superannuation guarantee obligation switched from quarterly payments to a **payday-based system**, known as *Payday Super*. Key changes include:
- Super must be calculated on **Qualifying Earnings (QE)**—this includes ordinary time earnings (OTE), commissions, salary-sacrifice contributions, and payments to contractors performing labour. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Employers must pay super at the same time they pay employees (weekly, fortnightly, or monthly), rather than quarterly. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Contributions must be **received by** the employee’s super fund within **7 business days after payday**, unless exceptional extensions apply (e.g., for new employees). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Steps Employers Must Take
1. **Update payroll systems** to track Qualifying Earnings and align pay cycles with super contributions. Ensure reporting software includes the new QE code (“Q”) under Single Touch Payroll. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
2. **Find an alternative to the SBSCH**—the Small Business Superannuation Clearing House closed permanently on 1 July 2026. Ensure charges and contributions are processed timely using other compliant clearing mechanisms. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iH/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai))
3. **Understand the changeover period (July 2026)**. Super payments between **1–28 July 2026** may apply to outstanding quarterly periods; payments from **29 July 2026 onward** apply to Payday Super obligations. Keeping clear records is essential. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iH/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai))
4. **Comply with reporting obligations** under Single Touch Payroll (STP)—from 1 July 2026 you need to report year-to-date Qualifying Earnings and super liability each payday. If unable immediately, start as soon as practicable. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Examples to Illustrate
- If an employee is paid **fortnightly**, under the new rules the employer’s super contribution for that pay must be calculated on all eligible earnings and paid along with or right after the pay is delivered, and reach the fund within seven business days.
- If you paid $1,200 in ordinary wages + $200 commission in a fortnightly pay, then \$1,400 is your Qualifying Earnings. Super guarantee = 12% × \$1,400 = \$168 per pay period.
- For July 2026: payments made between 1–28 July may still cover past quarterly periods; payments after 29 July will count only for Payday Super.
## What Happens If You Don’t Meet Obligations?
Failing to satisfy Payday Super requirements can trigger:
- **Super Guarantee Charge (SGC)** for missed or late payments.
- Penalties under the Superannuation Guarantee Charge Amendment Acts. Employers need to address issues as soon as possible.
- Mandatory compliance reporting, as the ATO increases scrutiny.
## Practical Tips to Stay Compliant
- Check your payroll provider or software is configured correctly *now*. Don’t wait.
- Conduct a payroll audit to ensure all types of payments (commissions, salary sacrifice etc.) fall into qualifying earnings.
- Keep thorough documentation of payment dates, amounts, allocation, and any errors or corrections.
- Seek advice from tax professionals if you're unsure about contracts or employee/contractor classifications.
Payday Super marks a major shift in how superannuation works in Australia. If you act early, update systems, and engage with your payroll and superannuation partners, you can make the transition smoothly and avoid unnecessary penalties.