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) 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)
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) |
| 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) |
| 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) |
| 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) |
Transitional Considerations
- The final quarterly SG payment for the June 2026 quarter remains due 28 July 2026, under old rules.(community.ato.gov.au)
- 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)
- Employers must download and retain records from SBSCH before its closure to support audits or employee queries.(ato.gov.au)
Actions to Take Now
- Audit payroll systems — ensure software providers or internal systems support payment timing, reporting of QE, and delivery within 7 business days.
- Train payroll and HR teams — clarify definitions of QE, handling contractors, and new reporting codes.
- Update contracts and policies — reflect changes in payday contributions; consider revising contractor agreements if payments are impacted.
- Coordinate with Super Funds and DSPs — check super fund validation, payment methods, and get ahead on system changes.
- 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)
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.