Compliance
Payday Super Reforms: What Employers Need to Know Before 1 July 2026
Australia’s Payday Super reform requires employers to pay super guarantee on each pay day starting 1 July 2026, changing timing, reporting, and closing the Small Business Superannuation Clearing House.
By NomadicTax Research Team • 5-8 min read • June 7, 2026
## What is Payday Super?
Starting **1 July 2026**, Australia will implement the **Payday Super reform**, changing how employers must calculate, report, and timely deliver superannuation guarantee contributions. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
Key features:
- Super guarantee must be **calculated based on "Qualifying Earnings" (QE)**, which combines ordinary time earnings and additional payments. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Payments must be **made on payday**, with contributions **received by the super fund within 7 business days** (subject to extended timeframes for certain employees). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Employers must begin using the new QE reporting code "Q" in Single Touch Payroll (STP) from 1 July 2026. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Upcoming Changes & Deadlines
| Deadline | What must be implemented |
|---|---|
| Before 1 July 2026 | Ensure payroll software supports QE code “Q”, fund validation, and faster payment paths. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) |
| 30 June 2026 | **Close Small Business Superannuation Clearing House (SBSCH)** permanently. Employers must download records before this date. ([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)) |
| 1 July 2026 | Payday Super in full effect. Reporting and super payments must align with new rules. |
## Compliance Obligations
- Use correct payroll codes
- Maintain records showing when payments were made and received
- SuperStream and payment systems must allow nearly real-time payments via NPP, and implement improved error reporting and verification. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Super funds must allocate or return contributions within **3 business days** (down from the current 20 days for unallocated contributions). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Challenges to Watch
- **Software readiness** – payroll and bookkeeping systems must handle tighter timeframes and new reporting codes.
- **Cashflow** – employers will need to remit super more frequently, sometimes weekly or per payday, pushing tighter cash cycles.
- **Contribution timing vis-à-vis cap** – more frequent payments risk exceeding concessional contributions cap, so planning is needed. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JRF000004wH4c/p00414591?utm_source=openai))
## What Employers Should Do Now (Action Plan)
1. **Upgrade payroll and accounting systems** to ensure compliance with STP code "Q" and new timelines.
2. **Train payroll staff** on new definitions: Qualifying Earnings, new payment windows, and reporting responsibilities.
3. **Switch from SBSCH** if currently using it, and download all records before it closes on 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))
4. **Map out pay cycles** to understand payment receipt obligations, and ensure funds are sent and received within 7 business days.
5. **Communicate with super funds** and ensure systems (like Fund Validation Service) are up to date. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
6. **Monitor for transitions** – timing between the old quarterly system and new payday system during July 2026 requires clear planning. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo000004xYZd/p00419226?utm_source=openai))
## Example: Changeover in July 2026
Priya pays wages fortnightly. The last quarterly super payment for April-June 2026 is due 28 July. Her first Payday Super run is 6 July. Under the new rules, the contribution for 6 July must be **received by 13 July**. Any payment received by 28 July will reduce what’s owed for the quarter first. ([community.ato.gov.au](https://community.ato.gov.au/s/question/a0JMo000004xYZd/p00419226?utm_source=openai))
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**Bottom line**: Employers must act now to avoid missed deadlines, penalties, or super guarantee charge liabilities. Time is short before 1 July 2026.