Payday Super introduces major changes to how employers calculate, pay and report super guarantee (SG) contributions.

From 1 July 2026, employers must pay employees’ super guarantee on payday.

How Payday Super Works

Under Payday Super:

• Super guarantee will be calculated at 12% of an employee’s qualifying earnings (QE).
• QE is a new term that includes ordinary time earnings (OTE) and certain additional payments.
• Super must be paid on payday and received by the employee’s super fund within 7 business days (unless an extended timeframe applies, such as for new employees).

What You Should Do Now

• Understand the changes outlined below.
• Review your payroll systems and processes to prepare for more frequent super payments.
• Stay informed by checking for updates and speaking with your tax advisor.

What’s Changing

1. Payment Deadlines

Current rules

• Super must be received by the super fund within 28 days after the end of each quarter.
• Due dates are:
  • 28 October
  • 28 January
  • 28 April
  • 28 July
• Employers can pay quarterly or more frequently (e.g. monthly).

From 1 July 2026

• Super must be paid on payday, at the same time as qualifying earnings.
• Contributions must be received by the fund within 7 business days.
• Some exceptions to the 7-day rule apply (e.g. for new employees).

2. Calculating Super Guarantee

Current rules

• Super is calculated as 12% of ordinary time earnings (OTE).

From 1 July 2026

• Super will be calculated as 12% of qualifying earnings (QE).
• QE includes:
  • OTE
  • Salary sacrifice contributions
  • Other payments currently included in salary or wages for super purposes.

3. Reporting Super Payments

Current rules

• Employers report either OTE or super liability through Single Touch Payroll (STP).

From 1 July 2026

• Employers must report both qualifying earnings (QE) and super liability through STP.

4. Late Payments and the Super Guarantee Charge (SGC)

Current rules

The SGC applies when super is not received within 28 days after the end of a quarter.

The SGC:

• Is self-assessed by the employer
• Requires lodging an SGC statement
• Is calculated on salary and wages
• Includes 10% annual interest
• Includes a flat administration fee
• Is not tax deductible

From 1 July 2026

The SGC applies if super is not received within 7 business days of payday (unless an extended timeframe applies).

The new SGC:

• Will be assessed by the ATO
• Calculated on qualifying earnings (QE)
• Includes interest that compounds daily at the general interest charge rate
• Includes an administrative uplift, which may vary depending on your compliance history and may be reduced through voluntary disclosure
• Will be tax deductible

5. Penalties

Current rules

• Penalties can be up to 200% of the SGC.
• Penalties may be partially or fully remitted.

From 1 July 2026

• Penalties will be 25% or 50% of unpaid SGC, depending on prior penalty history.

6. Small Business Superannuation Clearing House (SBSCH)

Current situation

• SBSCH closed to new users on 1 October 2025.
• Existing users can access the service until 30 June 2026.
• All users must transition to another super payment option.

From 1 July 2026

• SBSCH will no longer be available.

7. Processing Payments and Employee Data

Current challenges

• Super payments can take several days to reach funds.
• Incomplete or incorrect employee data can cause processing errors and delays.
• Employers may not be aware of changes to super fund details (e.g. mergers).

From 1 July 2026

SuperStream standards will be updated to:

• Enable near real-time payments via the New Payments Platform
• Improve error messaging for faster correction
• Introduce a member verification request, allowing employers to confirm:
  • The fund can match the employee
  • The fund will accept the contribution

The Fund Validation Service will also improve early notification of major fund changes, such as mergers.

 

Expected Changes (Not Yet Law)

The following proposed changes are intended to help employers prepare for 1 July 2026. They are not yet legislated.

Offering Employees a Stapled Fund

Current rules

• Employers must provide employees with a choice of super fund.
• If no choice form is returned, employers must request stapled fund details from the ATO.

From 1 July 2026 (proposed)

• Employers can request a stapled fund and offer it to employees at the same time as providing the choice form.
• Employers must still:
  • Offer a choice of fund
  • Request stapled fund details if no choice form is received.

Allocation of Contributions by Super Funds

Current rules

• Super funds have 20 business days to allocate or return contributions.

From 1 July 2026 (proposed)

• Super funds will have 3 business days to allocate or return contributions.

 

Summary

From 1 July 2026, super guarantee must be:

• Calculated on qualifying earnings
• Paid on payday
• Received by the super fund within 7 business days
• Reported more comprehensively through STP

Employers should begin reviewing payroll systems and processes now to ensure they are ready for more frequent payments and updated reporting requirements.