What You Need to Know
Payday Super is one of the biggest changes to Australia’s super system in years. Here’s a plain-English summary of what’s changing and what employers need to do.
| Topic | Details |
| What is it? | From 1 July 2026, employers must pay super at the same time as wages — every single payday. Currently, super only needs to be paid quarterly. |
| The 7-day rule | The super contribution must be received by the employee’s super fund within 7 business days of payday. It’s not enough to just send it — the fund must actually receive it within that window. |
| New rate calculation | Super is calculated at 12% of ‘Qualifying Earnings’ (QE) — a new term that replaces ‘Ordinary Time Earnings’ (OTE). For most employees this won’t change the amount paid, but the definition is broader and now includes all commissions and some contractor payments. |
| Penalties for late payment | If super isn’t received by the fund within 7 business days, the Super Guarantee Charge (SGC) applies automatically. Penalties can reach up to 200% of the unpaid amount. The ATO has real-time visibility via STP reporting, so late payments are harder to miss. |
| First year approach | The ATO has confirmed a softer compliance approach for 1 July 2026 – 30 June 2027. Employers who genuinely try to comply and fix errors quickly will not be the primary focus of enforcement action. |
| SBSCH closing | The ATO’s Small Business Superannuation Clearing House (SBSCH) closes on 1 July 2026. If you currently use it, you must move to a SuperStream-compliant payroll solution before then. |
| What to do now | Review your payroll software (confirm it supports Payday Super), check your clearing house timing, update onboarding processes for new employees, and review cash flow — paying super every payday instead of quarterly is a significant change to timing. |
Action required before 1 July 2026: Speak with your payroll provider and update your processes. Employers using the SBSCH must transition to an alternative solution immediately.
Source: Australian Taxation Office (ato.gov.au) — Registered Agent Lodgment Program 2025–26. Always verify dates with the ATO as they may be subject to change.