Compliance

Payday Super: What Employers Must Know Now That It’s Live

From 1 July 2026, the Payday Super reforms require employers to pay superannuation at every payday—no more quarterly payments. Here’s how to get compliant, avoid penalties, and make your payroll systems work.

By NomadicTax Research Team • 5-8 min read • August 24, 2026

## What is Payday Super? Australia’s new **Payday Super** regime requires that superannuation guarantee (SG) contributions must be paid **every payday**, rather than quarterly. This means contributions must be calculated on **qualifying earnings**, including ordinary time earnings, commissions, salary sacrifice, and certain payments to contractors paid for labour. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) Payments must **reach the super fund within 7 business days** after payday. Employers who also work through payroll periods or transitional arrangements may benefit from extended timeframes under certain conditions. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) ## Key Changes and Deadlines - **Effective date:** 1 July 2026. All qualifying earnings paid on or after that date are subject to Payday Super. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) - **SuperStream methods:** All employer contributions must use SuperStream-compliant channels. If you were using the Small Business Superannuation Clearing House (SBSCH), note that it **closed permanently from 1 July 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)) - **STP reporting updates:** Alongside giving pay each payday, reporting must include qualifying earnings and super liability for each payroll in Single Touch Payroll (STP). Some reporting codes have changed. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai)) ## Compliance and First Year Approach - The ATO has indicated a compliance approach will be **more lenient in year one** in recognition of the transition but expects employers to make every effort to meet new obligations. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) - For the final quarterly payment for Q4 (1 April – 30 June 2026), employers must ensure contributions reach super funds **by 28 July 2026**; failure may trigger Super Guarantee Charge (SGC) liability. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iHIAS/payday-super-has-started-heres-what-employers-need-to-know-and-do?utm_source=openai)) ## Practical Steps Employers Should Take 1. **Review payroll systems and software**: Ensure payroll and accounting software can calculate qualifying earnings, generate super liability each payday, and initiate payments that arrive within 7 business days. 2. **Select or confirm SuperStream-compliant payment methods**: If formerly using SBSCH, migrate to commercial clearing houses or direct SuperStream-approved channels now. 3. **Train staff and advise payroll and finance teams**: Understand changes to reporting, contribution timelines, and how to handle choice of fund notices. 4. **Audit past practices**: Examine how commissions, bonuses, and contractor-labour payments were treated; adjust methodology going forward to avoid underpayment risks. 5. **Plan cashflow**: Smaller businesses may need to adjust budgets to smooth the transition from quarterly bulk contributions to more frequent but smaller payments. ## Case Example Sarah owns a café that pays weekly. She pays wages every Friday. Under Payday Super, she must calculate super on all qualifying earnings (wages, plus any commissions or bonuses) each Friday, and make sure that payment **reaches the employee’s super fund within 7 business days**. Before 1 July, she paid super in one lump sum quarterly; now payments will be weekly or fortnightly depending on pay cycle. ## Why It Matters These changes improve super members’ visibility over their entitlements, reduce delays in payment, and enhance the ATO’s ability to enforce compliance. Employers failing to adjust will face SG Charge penalties, interest, and possibly reputational risks. For employees, this means super is contributed closer in time to when earnings are earned—improving cash-flow into retirement savings. **Summary:** Payday Super is now in force. Employers must pay SG each payday, ensure fund receipt within 7 business days, report qualifying earnings and super liability via STP, and replace old systems like the SBSCH. Early compliance, system changes, and process training are essential to avoid penalties and ensure smooth operation in this new compliance environment.