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Payday Super: What Employers Need to Know Before 1 July 2026

Starting 1 July 2026, the way you pay superannuation is changing. The Australian Government is introducing 'Payday Super,' requiring employers to pay super at the same time they pay salary and wages.

 What is changing?

Feature

Current Rules

From 1 July 2026

Frequency

Quarterly

Every Payday

Deadline

28 days after quarter

7 business days after payday

Calculation

Based on OTE

Based on Qualifying Earnings (QE)

Clearing House

SBSCH Available

SBSCH Closed (must use alternative)
Why the change?

This reform ensures employees' retirement savings grow faster through compounding interest and gives the ATO better visibility to ensure everyone is paid correctly.

Employer Action Checklist
  • Review Your Cash Flow: Super will now be a regular, recurring cost every pay cycle rather than a large quarterly lump sum. Update your forecasts now. This will be especially true in July when you’ll have to be paying both the Apr-Jun quarterly Super, as well as July’s payruns.
  • Transition away from the SBSCH immediately. If you currently use the Small Business Superannuation Clearing House, you must move to an alternative SuperStream-compliant solution before 1 July 2026. Evaluate options offered by your payroll provider or super funds. See the ATO’s guidance on SBSCH.
  • Check Contractors: Some contractors are considered "employees" for super purposes. If you have a contractor, you may complete the super guarantee eligibility tool and inform us of the result so we can process their Superannuation.
  • Pay on Time: Don’t wait until the 7th business day. Paying on your actual payday allows for processing time and avoids accidental penalties.

How We Are Helping You

As your accounting partner, we are managing the technical transition for you:

  • Xero Readiness: We will ensure your Xero settings are updated to calculate "Qualifying Earnings" (the new super base) and report correctly via Single Touch Payroll.
  • Data Review: We will review missing employee super fund details to prevent delays that can cause late fees.
  • Ongoing timely superannuation processing, and payment

The Cost of Being Late

Timing is critical. If super isn't received within 7 business days of payday:

  • The ATO will automatically apply the Super Guarantee Charge (SGC), which includes interest and admin fees on any late payments. (and late payment fees are not tax deductible)
  • Persistent lateness can lead to penalties of up to 200%.

Official ATO Resources