Compliance
Payday Super: What Employers Must Do Under the New Super Guarantee Rules
From 1 July 2026 employers face major changes in when and how super guarantee must be paid and reported — here’s your compliance checklist under the Payday Super reforms.
By NomadicTax Research Team • 5-8 min read • August 13, 2026
## What is Payday Super?
Payday Super refers to a suite of reforms introduced by the **Treasury Laws Amendment (Payday Superannuation) Act 2025** and related legislation, which change how and when super guarantee (SG) obligations must be met by employers.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) Effective **1 July 2026**, employers must calculate SG on **qualifying earnings (QE)** and pay contributions each payday, ensuring funds receive them within **7 business days of payday**, unless certain exceptions apply.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
## Key Changes and Obligations for Employers
| Area | Change | What Employers Must Do |
|------|--------|--------------------------|
| **Pay cycle & payments** | Previously quarterly payments; now every payday | Update payroll to calculate SG per pay period; ensure super payments hit funds within 7 business days.([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)) |
| **Qualifying earnings (QE)** | Broader definition includes ordinary time earnings and certain payments to labour-contractors primarily for labour | Identify what counts as QE; adjust payroll classification; track contractor payments as required.([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)) |
| **Small Business Superannuation Clearing House (SBSCH)** | Closing 30 June 2026 | Remove reliance on SBSCH; register an alternative super payment method; 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)) |
| **STP Reporting** | New codes & data required | Update Single Touch Payroll (STP) systems: report qualifying earnings and super liability per pay cycle using new codes.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) |
## Transitional Considerations
- The final quarterly SG payment for the June 2026 quarter remains due **28 July 2026**, under old rules.([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))
- From 1 July 2026, **any contributions made** from that date will apply against Payday Super obligations, even if they fall within overlapping periods.([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))
- Employers must download and retain records from SBSCH before its closure to support audits or employee queries.([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))
## Actions to Take Now
1. **Audit payroll systems** — ensure software providers or internal systems support payment timing, reporting of QE, and delivery within 7 business days.
2. **Train payroll and HR teams** — clarify definitions of QE, handling contractors, and new reporting codes.
3. **Update contracts and policies** — reflect changes in payday contributions; consider revising contractor agreements if payments are impacted.
4. **Coordinate with Super Funds and DSPs** — check super fund validation, payment methods, and get ahead on system changes.
5. **Seek professional advice if needed** — for complex payrolls (multiple pay cycles, mixed employment types) the transitional risks may be material.
## Example Scenario
> **Business Co.** pays staff fortnightly. Under Payday Super:
>
> - On each payday, the employer adds up all QE (wages, overtime, etc.).
> - Calculates 12% SG on that QE for each employee.
> - Ensures the amount reaches the employee’s nominated super fund within 7 business days.
> - Reports the QE and super liability via STP with the new code “Q”.
>
Missing deadlines or misclassifying earnings could lead to **SG Charge exposure**, penalties, and **audit risk**.
## Risks of Non-Compliance
- SG shortfalls and associated SG Charge liabilities.
- Penalties under tax law for late or incorrect reporting.
- Reputational risk with employees if contributions are delayed or mispriced.
- Calculating on-time vs late contributions: allowable longer periods apply in certain cases (new employees, changing funds, etc.).([ato.gov.au](https://www.ato.gov.au/law/view/document?LocID=%22COD%2FLCR2026D3%2FNAT%2FATO%2Fft7%22&PiT=99991231235958&utm_source=openai))
**In summary**, Payday Super is a fundamental change to how super guarantees are handled. Employers should move quickly to align payroll, reporting, and payment systems, so they avoid costly penalties and stay compliant from 1 July 2026.