Payday Super: What Australian Employers Need to Know Before 1 July 2026
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- 4 days ago
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Published: January 2026 | Paul Lukasiewicz, Harbourlight Ledgers
The way Australian employers pay superannuation is changing. From 1 July 2026, you'll need to pay your employees' super on payday - every payday - instead of quarterly.
If you've got employees, this affects you. Here's what you need to know, and what you need to do.
What's Changing?
Current system (until 30 June 2026):
Super paid quarterly
Due dates: 28 October, 28 January, 28 April, 28 July
You have up to 3 months after the work is performed to pay the super
New system (from 1 July 2026):
Super paid on payday (weekly, fortnightly, monthly - whenever you pay wages)
Must reach the employee's super fund within 7 business days of payday
No more quarterly deadlines
This change is now law. The Treasury Laws Amendment (Payday Superannuation) Act 2025 and the Superannuation Guarantee Charge Amendment Act 2025 passed Parliament in November 2025.
Why the Change?
The government wants to ensure employees receive their super entitlements on time. Currently, many employees don't discover missing super until years later - often when it's too difficult to recover.
With payday super, employees will see contributions appearing in their super accounts within days of each pay. If something's wrong, they'll know immediately.
For employers who are already doing the right thing, this provides earlier certainty. For those who aren't, the increased visibility will make non-compliance much harder to hide.
What is "Qualifying Earnings"?
The legislation introduces a new term: qualifying earnings (QE).
Previously, super was calculated on "ordinary time earnings" (OTE). From 1 July 2026, it's calculated on QE, which includes:
Ordinary time earnings
Commissions
Salary sacrifice contributions
Certain payments to contractors treated as employees for super purposes
For most businesses, this won't change the amount you pay - but your payroll system will need to calculate it correctly.
The 7 Business Day Rule
Super contributions must be received by the employee's super fund within 7 business days of payday.
Not sent. Received.
This means you need to account for:
Processing time at your end
Transmission time through your clearing house or payment method
Allocation time at the super fund
If you're using a slow payment method, you might need to send super 3-4 days before the deadline just to be safe.
Exception: For new employees who haven't provided their super fund choice, you have longer - up to 28 days to get the first payment sorted.
What Happens if You're Late?
If super isn't received within the required timeframe, you'll be liable for the Superannuation Guarantee Charge (SGC).
The SGC includes:
The unpaid super amount
Interest (currently 10% per annum)
An administration fee ($20 per employee per quarter)
Plus, you cannot claim a tax deduction for the SGC
New penalties from 1 July 2026:
25% penalty if you fail to pay SGC on time (or 50% for repeat offenders)
No more "late payment offsets" - you can't reduce the charge by paying late super before the ATO catches you
The message is clear: pay on time, or it gets expensive.
Single Touch Payroll (STP) Changes
From 1 July 2026, you'll need to report two new fields through STP:
Qualifying Earnings (QE) amount
Super Liability amount
The ATO will match this STP data against what your employees' super funds report receiving. Any mismatch will be immediately visible.
This real-time matching means the ATO will know within days if you've paid super late or not at all. The old approach of "catch up before the ATO notices" is gone.
The Small Business Superannuation Clearing House is Closing
If you currently use the ATO's Small Business Superannuation Clearing House (SBSCH):
It closed to new users on 1 October 2025
All users must stop using it by 30 June 2026
You'll need to find an alternative payment method
Commercial alternatives include:
Clearing houses built into payroll software (Xero, MYOB, etc.)
Standalone clearing house services
Direct payment to super funds via SuperStream
Make this change now, not in June.
The First Year: ATO's "Grace Period"
The ATO has confirmed a more flexible compliance approach for the first year (1 July 2026 - 30 June 2027).
If you're making genuine efforts to comply and you fix issues quickly when they arise, you'll be classified as "low risk" and won't be the focus of compliance action.
This doesn't mean the rules don't apply. It means the ATO will consider your circumstances before taking enforcement action.
From 1 July 2027, full enforcement begins. There's no grace period in year two.
What You Need to Do Now
By End of February 2026:
Talk to your payroll software provider - When will they have payday super functionality ready? Will it require a software update or subscription upgrade?
Review your super payment method - Can it reliably deliver within 7 business days? If you're using SBSCH, you must switch now.
Talk to your bookkeeper or accountant - They should be reviewing this with you and planning the transition.
March - May 2026:
Test your payroll system with payday super calculations
Update your cash flow forecast - you're moving from 4 big payments per year to 26-52 smaller ones (depending on your pay frequency)
Train your payroll staff on the new requirements
Review employee super fund details - incorrect details = rejected payments = penalties
June 2026:
Final system validation - run parallel processing (calculate both ways) to ensure accuracy
Process your last quarterly super payment (for the April-June quarter, due 28 July 2026)
Brief your team on the changes
1 July 2026:
Go live. Your first payday super payment is due within 7 business days of your first pay run after 1 July 2026.
Impact on Your Cash Flow
This is the part many business owners haven't thought about yet.
Currently, you might pay super in big chunks - say $15,000 every three months for a team of 10 people.
From 1 July 2026, if you pay weekly, that's approximately $1,150 every week. If you pay fortnightly, it's $2,300 every two weeks.
The total annual amount doesn't change. But the timing does.
Why this matters:
You can't hold onto that super money as a cash buffer anymore
Tight cash flow weeks become tighter
You need to budget for super as part of every pay run, not as a quarterly event
Model this change now. Talk to your bookkeeper about how it affects your working capital.
Do You Need to Wait Until July 2026?
No. You can start paying super on payday right now.
If your business already has healthy cash flow and your systems are ready, making the switch early gives you:
More time to work out any issues
Better employee relations (they see their super faster)
One less thing to worry about in June 2026
Talk to your payroll provider about early adoption.
Common Questions
Q: I pay employees monthly. Does that mean monthly super too?A: Yes. Whatever your pay frequency, that's your super frequency.
Q: What if I pay some employees weekly and others fortnightly?A: Each employee's super is paid according to their pay frequency. It's more complex to manage, but that's the requirement.
Q: I'm a sole trader with no employees. Does this affect me?A: No. This only applies if you have employees.
Q: What about contractors?A: Generally, genuine contractors aren't entitled to super. But if a contractor is treated as an employee for super purposes, the payday super rules apply.
Q: Can I pay super more frequently than payday (e.g., weekly super but fortnightly pay)?A: Yes, you can pay super more frequently than required. You just can't pay less frequently.
Q: What if my employee hasn't given me their super fund details?A: You have 28 days to get it sorted for new employees. After that, the standard 7-day rule applies.
Getting Help
This is a significant operational change. It's not just "tick a box in your payroll software."
If you're uncertain about:
Whether your systems are ready
How it affects your cash flow
What you need to do to prepare
How to handle the transition
...that's what bookkeepers are for.
A good bookkeeper should be:
Reviewing this change with you in the next 2-3 months
Testing your payroll system's readiness
Helping you model the cash flow impact
Ensuring your STP reporting is configured correctly
If you haven't had this conversation with your bookkeeper yet, start it this week.
The Bottom Line
Payday super starts 1 July 2026. You have approximately 5 months to get ready.
The ATO will be watching. Super funds will be reporting. Employees will notice immediately if something's wrong.
This isn't optional. The legislation has passed. The penalties are real.
But if you prepare properly, the transition can be smooth. Start now, test thoroughly, and you'll be fine.
Need help getting ready for payday super?
We're helping businesses in Melbourne's western suburbs prepare for these changes - reviewing payroll systems, testing processes, and ensuring you're ready for 1 July.
Harbourlight Ledgers📞 (03) 9352 7821📧 info@harbourlightledgers.com.au🌐 harbourlightledgers.com.au
This article is based on current legislation and ATO guidance as at January 2026. While care has been taken to ensure accuracy, this is general information only and should not be relied upon as specific advice for your circumstances. Consult with a registered tax practitioner or BAS agent for advice relevant to your situation.
Sources:
Australian Taxation Office: Payday Superannuation
Fair Work Ombudsman: Payday Super - New Rules
Treasury Laws Amendment (Payday Superannuation) Act 2025
Superannuation Guarantee Charge Amendment Act 2025
Payday Super: What Australian Employers Need to Know Before 1 July 2026
Published: January 2026 | Paul Lukasiewicz, Harbourlight Ledgers
The way Australian employers pay superannuation is changing. From 1 July 2026, you'll need to pay your employees' super on payday - every payday - instead of quarterly.
If you've got employees, this affects you. Here's what you need to know, and what you need to do.
What's Changing?
Current system (until 30 June 2026):
Super paid quarterly
Due dates: 28 October, 28 January, 28 April, 28 July
You have up to 3 months after the work is performed to pay the super
New system (from 1 July 2026):
Super paid on payday (weekly, fortnightly, monthly - whenever you pay wages)
Must reach the employee's super fund within 7 business days of payday
No more quarterly deadlines
This change is now law. The Treasury Laws Amendment (Payday Superannuation) Act 2025 and the Superannuation Guarantee Charge Amendment Act 2025 passed Parliament in November 2025.
Why the Change?
The government wants to ensure employees receive their super entitlements on time. Currently, many employees don't discover missing super until years later - often when it's too difficult to recover.
With payday super, employees will see contributions appearing in their super accounts within days of each pay. If something's wrong, they'll know immediately.
For employers who are already doing the right thing, this provides earlier certainty. For those who aren't, the increased visibility will make non-compliance much harder to hide.
What is "Qualifying Earnings"?
The legislation introduces a new term: qualifying earnings (QE).
Previously, super was calculated on "ordinary time earnings" (OTE). From 1 July 2026, it's calculated on QE, which includes:
Ordinary time earnings
Commissions
Salary sacrifice contributions
Certain payments to contractors treated as employees for super purposes
For most businesses, this won't change the amount you pay - but your payroll system will need to calculate it correctly.
The 7 Business Day Rule
Super contributions must be received by the employee's super fund within 7 business days of payday.
Not sent. Received.
This means you need to account for:
Processing time at your end
Transmission time through your clearing house or payment method
Allocation time at the super fund
If you're using a slow payment method, you might need to send super 3-4 days before the deadline just to be safe.
Exception: For new employees who haven't provided their super fund choice, you have longer - up to 28 days to get the first payment sorted.
What Happens if You're Late?
If super isn't received within the required timeframe, you'll be liable for the Superannuation Guarantee Charge (SGC).
The SGC includes:
The unpaid super amount
Interest (currently 10% per annum)
An administration fee ($20 per employee per quarter)
Plus, you cannot claim a tax deduction for the SGC
New penalties from 1 July 2026:
25% penalty if you fail to pay SGC on time (or 50% for repeat offenders)
No more "late payment offsets" - you can't reduce the charge by paying late super before the ATO catches you
The message is clear: pay on time, or it gets expensive.
Single Touch Payroll (STP) Changes
From 1 July 2026, you'll need to report two new fields through STP:
Qualifying Earnings (QE) amount
Super Liability amount
The ATO will match this STP data against what your employees' super funds report receiving. Any mismatch will be immediately visible.
This real-time matching means the ATO will know within days if you've paid super late or not at all. The old approach of "catch up before the ATO notices" is gone.
The Small Business Superannuation Clearing House is Closing
If you currently use the ATO's Small Business Superannuation Clearing House (SBSCH):
It closed to new users on 1 October 2025
All users must stop using it by 30 June 2026
You'll need to find an alternative payment method
Commercial alternatives include:
Clearing houses built into payroll software (Xero, MYOB, etc.)
Standalone clearing house services
Direct payment to super funds via SuperStream
Make this change now, not in June.
The First Year: ATO's "Grace Period"
The ATO has confirmed a more flexible compliance approach for the first year (1 July 2026 - 30 June 2027).
If you're making genuine efforts to comply and you fix issues quickly when they arise, you'll be classified as "low risk" and won't be the focus of compliance action.
This doesn't mean the rules don't apply. It means the ATO will consider your circumstances before taking enforcement action.
From 1 July 2027, full enforcement begins. There's no grace period in year two.
What You Need to Do Now
By End of February 2026:
Talk to your payroll software provider - When will they have payday super functionality ready? Will it require a software update or subscription upgrade?
Review your super payment method - Can it reliably deliver within 7 business days? If you're using SBSCH, you must switch now.
Talk to your bookkeeper or accountant - They should be reviewing this with you and planning the transition.
March - May 2026:
Test your payroll system with payday super calculations
Update your cash flow forecast - you're moving from 4 big payments per year to 26-52 smaller ones (depending on your pay frequency)
Train your payroll staff on the new requirements
Review employee super fund details - incorrect details = rejected payments = penalties
June 2026:
Final system validation - run parallel processing (calculate both ways) to ensure accuracy
Process your last quarterly super payment (for the April-June quarter, due 28 July 2026)
Brief your team on the changes
1 July 2026:
Go live. Your first payday super payment is due within 7 business days of your first pay run after 1 July 2026.
Impact on Your Cash Flow
This is the part many business owners haven't thought about yet.
Currently, you might pay super in big chunks - say $15,000 every three months for a team of 10 people.
From 1 July 2026, if you pay weekly, that's approximately $1,150 every week. If you pay fortnightly, it's $2,300 every two weeks.
The total annual amount doesn't change. But the timing does.
Why this matters:
You can't hold onto that super money as a cash buffer anymore
Tight cash flow weeks become tighter
You need to budget for super as part of every pay run, not as a quarterly event
Model this change now. Talk to your bookkeeper about how it affects your working capital.
Do You Need to Wait Until July 2026?
No. You can start paying super on payday right now.
If your business already has healthy cash flow and your systems are ready, making the switch early gives you:
More time to work out any issues
Better employee relations (they see their super faster)
One less thing to worry about in June 2026
Talk to your payroll provider about early adoption.
Common Questions
Q: I pay employees monthly. Does that mean monthly super too?A: Yes. Whatever your pay frequency, that's your super frequency.
Q: What if I pay some employees weekly and others fortnightly?A: Each employee's super is paid according to their pay frequency. It's more complex to manage, but that's the requirement.
Q: I'm a sole trader with no employees. Does this affect me?A: No. This only applies if you have employees.
Q: What about contractors?A: Generally, genuine contractors aren't entitled to super. But if a contractor is treated as an employee for super purposes, the payday super rules apply.
Q: Can I pay super more frequently than payday (e.g., weekly super but fortnightly pay)?A: Yes, you can pay super more frequently than required. You just can't pay less frequently.
Q: What if my employee hasn't given me their super fund details?A: You have 28 days to get it sorted for new employees. After that, the standard 7-day rule applies.
Getting Help
This is a significant operational change. It's not just "tick a box in your payroll software."
If you're uncertain about:
Whether your systems are ready
How it affects your cash flow
What you need to do to prepare
How to handle the transition
...that's what bookkeepers are for.
A good bookkeeper should be:
Reviewing this change with you in the next 2-3 months
Testing your payroll system's readiness
Helping you model the cash flow impact
Ensuring your STP reporting is configured correctly
If you haven't had this conversation with your bookkeeper yet, start it this week.
The Bottom Line
Payday super starts 1 July 2026. You have approximately 5 months to get ready.
The ATO will be watching. Super funds will be reporting. Employees will notice immediately if something's wrong.
This isn't optional. The legislation has passed. The penalties are real.
But if you prepare properly, the transition can be smooth. Start now, test thoroughly, and you'll be fine.
Need help getting ready for payday super?
We're helping businesses in Melbourne's western suburbs prepare for these changes - reviewing payroll systems, testing processes, and ensuring you're ready for 1 July.
Harbourlight Ledgers📞 (03) 9352 7821📧 info@harbourlightledgers.com.au🌐 harbourlightledgers.com.au
This article is based on current legislation and ATO guidance as at January 2026. While care has been taken to ensure accuracy, this is general information only and should not be relied upon as specific advice for your circumstances. Consult with a registered tax practitioner or BAS agent for advice relevant to your situation.
Sources:
Australian Taxation Office: Payday Superannuation
Fair Work Ombudsman: Payday Super - New Rules
Treasury Laws Amendment (Payday Superannuation) Act 2025
Superannuation Guarantee Charge Amendment Act 2025
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