What is Payday Super?
“Payday Super” refers to government-backed reforms aimed at ensuring superannuation is paid at the same time as wages, closing gaps where contributions might otherwise lag. This reform takes effect from 1 July 2026, under new legislation.(ato.gov.au)
Key Requirements for Employers
- Timing of contributions: Super contributions need to reach the employee’s chosen fund within 7 calendar days of the corresponding salary payment, as required for Ordinary Time Earnings (OTE) components.(ato.gov.au)
- Closer to pay date reporting: Employers will need to report both ‘OTE’ and ‘Super Liability’ fields in their Single Touch Payroll (STP) submissions. This increases visibility and ensures accurate obligation tracking.(ato.gov.au)
- Payment and data standards updates: SuperStream standards are being revised; payments via the New Payments Platform (NPP) are expected to be accepted and Funds can opt-in ahead of the implementation deadline.(ato.gov.au)
- Closing the Small Business Super Clearing House: This service will cease from 1 July 2026. Employers using this clearing house must find alternative super payment channels before that date.(ato.gov.au)
Compliance Tips
- Review your payroll schedule. If you pay employees weekly or fortnightly, ensure you have processes that align super payments with those pay dates.
- Upgrade STP-capable software to include the new reporting features. Test now to avoid delays.
- Identify your current super payment system in use and plan migration if relying on the clearing house service that’s closing.
- Consider communication with staff. Let employees know their fund is receiving contributions quicker, improving transparency and trust.
Examples
- Example A: You pay salaries on the 25th of every month. Under Payday Super, super for that pay must be deposited within 7 calendar days — so by the 1st (or early next month).
- Example B: For weekly wages (say, every Friday), the super for wages paid must reach the fund by the following Thursday.
Risks of Non-Compliance
Failing to meet these requirements could result in:
- SG (Super Guarantee) charge liabilities, including administration charges and penalties.
- Reputational risk for employee distrust.
- Increased audit and compliance scrutiny by ATO, especially in light of system changes.
Bottom Line
From 1 July 2026, paying super must be baked into the same cycle as wages. Employers should audit their payroll and super systems now, ensure systems are updated, and establish rules to hit those 7-day deposit deadlines. Paying late won’t just cost extra — it may risk legal or regulatory action. Ensure your practices are aligned now, so you’re ahead when Payday Super becomes mandatory.