Payday Super Is Coming: What Employers and Employees Need to Know Before 1 July 2026

29 May

From 1 July 2026, the way superannuation guarantee (SG) contributions are paid will change significantly. Under the new rules, employers will be required to pay SG contributions on payday, at the same time as salary or wages, rather than quarterly. This reform is commonly referred to as payday super.

Currently, most employers pay super once each quarter. From July 2026, super will generally need to be paid each pay cycle, aligning super contributions directly with payroll.

To support businesses through the transition, the ATO has released guidance and a preparation checklist. Below is a practical summary of what small businesses should be doing now to get ready.

For employees, payday super is designed to ensure contributions are paid more frequently and credited to super funds sooner, improving transparency and long‑term retirement outcomes.

Understanding the New Payday Super Rules

From 1 July 2026, employers will need to comply with the following requirements under the legislation as currently enacted:

Superannuation guarantee contributions must be paid on every payday
SG contributions must generally be received by the employee’s super fund within seven business days of payday
Super will be calculated using a new concept known as qualifying earnings

Qualifying earnings expand on the current concept of ordinary time earnings (OTE). They include payments for ordinary hours worked, certain types of paid leave, allowances, bonuses and lump sum payments.

They also include commissions, salary sacrifice amounts paid to super, and payments to workers treated as employees under the expanded definition — including some independent contractors paid mainly for their labour.

Employers will also be required to report qualifying earnings and superannuation liabilities through Single Touch Payroll (STP)‑enabled software.

April to June 2026: Planning and Preparation

Early planning is critical to managing the transition smoothly. In the first half of 2026, businesses should:

Decide how they will transition from quarterly super payments to payday payments
Seek advice from their accountant or payroll provider if unsure how the new system will operate
Review the impact of more frequent super payments on cash flow, budgets and forecasts
Check all employee super fund details, including member numbers and unique superannuation identifiers
Resolve any warning messages or rejected payments, as incorrect details may result in late or failed payments once payday super begins

Finalise Systems and Processes

As the start date approaches, businesses should ensure systems and processes are ready:

Confirm payroll software can support payday super requirements
If using a clearing house, verify that it supports payday super and whether system upgrades are required
Businesses currently using the ATO Small Business Superannuation Clearing House (SBSCH) must transition to an alternative clearing house before 1 July 2026, as the SBSCH will close from that date
Download and retain SBSCH transaction history, as records will not be accessible once the service closes
Establish procedures to quickly address super payment errors
Allow sufficient processing time to ensure super is received by the fund within seven business days of payday
Maintain clear and accurate payment records
Ensure SG for the January to March 2026 quarter is paid by 28 April 2026

From 1 July 2026: Payday Super Begins

Once payday super commences, employers must ensure they:

Pay SG contributions in full, on time and to the correct fund
Ensure contributions are received and allocated by the fund within seven business days of each payday
Calculate SG based on qualifying earnings
Report qualifying earnings and SG liabilities through STP‑compliant software
Make the final quarterly SG payment for the April to June 2026 quarter by 28 July 2026

The SBSCH cannot be used for any payments made on or after 1 July 2026. In addition, no late payment offset will apply to the final quarterly contribution.

Failure to meet the new requirements may result in significant penalties, including the Superannuation Guarantee Charge, which can exceed the original super amount owed.

Preparing for 1 July 2026

Payday super represents a major shift for employers, particularly in payroll processes and cash flow management. Starting early allows time to review systems, test processes and make adjustments before the new rules take effect.

If you are unsure how payday super will affect your business, payroll or cash flow, please contact us. We can help you prepare now so everything is in place well before 1 July 2026.

Martha Martha