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)
Key features:
- Super guarantee must be calculated based on "Qualifying Earnings" (QE), which combines ordinary time earnings and additional payments. (softwaredevelopers.ato.gov.au)
- 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)
- Employers must begin using the new QE reporting code "Q" in Single Touch Payroll (STP) from 1 July 2026. (softwaredevelopers.ato.gov.au)
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) |
| 30 June 2026 | Close Small Business Superannuation Clearing House (SBSCH) permanently. Employers must download records before this date. (ato.gov.au) |
| 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)
- Super funds must allocate or return contributions within 3 business days (down from the current 20 days for unallocated contributions). (softwaredevelopers.ato.gov.au)
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)
What Employers Should Do Now (Action Plan)
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Upgrade payroll and accounting systems to ensure compliance with STP code "Q" and new timelines.
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Train payroll staff on new definitions: Qualifying Earnings, new payment windows, and reporting responsibilities.
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Switch from SBSCH if currently using it, and download all records before it closes on 30 June 2026. (ato.gov.au)
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Map out pay cycles to understand payment receipt obligations, and ensure funds are sent and received within 7 business days.
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Communicate with super funds and ensure systems (like Fund Validation Service) are up to date. (softwaredevelopers.ato.gov.au)
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Monitor for transitions – timing between the old quarterly system and new payday system during July 2026 requires clear planning. (community.ato.gov.au)
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)
Bottom line: Employers must act now to avoid missed deadlines, penalties, or super guarantee charge liabilities. Time is short before 1 July 2026.