Payday Super: How Paying Super is Changing
- anytimeassist
- Jan 16
- 4 min read
Updated: Jan 20
From 1 July 2026, employers must pay their employees’ super guarantee on payday, at the same time as salary and wages. These changes affect when super is paid, how it is reported, and the timeframes employers must meet to stay compliant.
What is Payday Super?
Payday Super is a change to how and when employers pay super.
From 1 July 2026, employers will be required to:
Pay super guarantee on payday, alongside salary and wages
Ensure contributions are received by the employee’s super fund within seven business days (unless an extended timeframe applies, such as for new employees)
The super guarantee rate remains 12%, but the law introduces new terminology and tighter payment deadlines.
What is Changing?
When Super is Paid
Prior to 1 July 2026
Super must be received by the fund within 28 days after the end of the quarter
Employers can pay super at various intervals, such as monthly or quarterly
From 1 July 2026
Super must be paid each time salary and wages are paid
Contributions must be received by the employee’s super fund within seven business days of payday
Businesses can choose to start paying super with each pay run before 1 July 2026 if their systems allow. If using Xero this is available now.
How Super is Calculated
The super guarantee rate remains 12%, and the underlying earnings that attract super are largely unchanged for most employers.
From 1 July 2026, the term Qualifying Earnings (QE) will be used for super guarantee reporting.
Qualifying Earnings brings together ordinary time earnings and other payments already treated as salary or wages for super guarantee purposes. Importantly, there are no changes to what is considered ordinary time earnings under Payday Super.
Qualifying Earnings include:
Ordinary time earnings (OTE), being payments for ordinary hours of work, including certain types of paid leave, allowances, bonuses, and lump sum payments
All commissions paid to an employee
Salary sacrifice amounts that would have been included as qualifying earnings if they had not been sacrificed to super
Payments to workers covered by the expanded definition of employee, including some independent contractors who are paid mainly for their labour
Reporting through Single Touch Payroll (STP)
Prior to 1 July 2026
Employers report ordinary time earnings or super liability through STP
From 1 July 2026
Employers must report both Qualifying Earnings and super liability through STP
This allows the ATO to better monitor super payments and whether they are made on time.
Late payments and the Super Guarantee Charge
The consequences of late super payments will apply much sooner.
Prior to 1 July 2026
SGC applies if super is not received within 28 days of the end of the quarter
It is self-assessed by the employer
Includes interest at 10% per annum and a flat administration fee
Is not tax deductible
From 1 July 2026
SGC applies if super is not received within seven business days of payday
The charge is assessed by the ATO
Calculated based on Qualifying Earnings
Includes interest that compounds daily
Includes an administrative uplift, which may vary depending on an employer’s compliance history
The SGC will be tax deductible
Penalties
Prior to 1 July 2026
Penalties can be up to 200% of the SGC, with possible remission
From 1 July 2026
Penalties will be 25% or 50% of the unpaid SGC, depending on prior penalties
Small Business Superannuation Clearing House (SBSCH)
SBSCH closed to new users on 1 October 2025
Existing users can continue using the service until 30 June 2026
From 1 July 2026, SBSCH will no longer be available
Businesses currently using SBSCH will need to move to another method of paying super.
What You Need To Do
Review Payroll and Super Processes
Check that your payroll system can:
Pay super with each pay run
Meet the seven-business-day payment requirement
Report Qualifying Earnings and super liability through STP
If you are using Xero it has the capacity to do this.
Prepare for more Frequent Payments
Paying super on payday may impact cash flow in the short term. Planning ahead can help manage this change smoothly.
Stay Across Deadlines and Compliance
With shorter timeframes and daily interest on late payments, keeping super payments accurate and on time will be critical.
Transition Away from SBSCH
If you currently use the Small Business Superannuation Clearing House, ensure you have an alternative payment method in place before 1 July 2026.
More Information
Payday Super is a change in how super obligations are managed, but with the right setup, it can simplify payroll and provide greater certainty for both employers and employees.
If you’d like support reviewing your payroll systems, preparing for Payday Super, or ensuring ongoing compliance, contact Jess at Anytime Assist for personalised bookkeeping and payroll assistance.
Disclaimer:
This information is general in nature and has been provided for informational purposes only. It does not take into account your personal circumstances. You should seek advice from a registered tax or accounting professional before acting on this information.
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