Employers need to start preparing for the introduction of Payday Super from July 1, 2026, advises HVIA EmployerAssist provider Industry Legal Group.
From that date, employers must pay superannuation guarantee contributions at the same time they pay their employees’ salary and wages. The change replaces the current quarterly payment cycle with a payday-aligned obligation.
It is a significant structural reform to the superannuation guarantee (SG) system and it affects every employer in Australia.
What Is Changing
Under the current system, employers must ensure SG payments are received by a super fund within 28 days of the end of each quarter.
From July 1, 2026, employers will instead be required to pay SG contributions on each pay day, at the same time as salary and wages. Contributions must be received by the employee’s super fund within seven business days of pay day.
There are limited exceptions. For example, the first super contribution for a new employee must be made within 20 business days of the salary or wages being paid.
A New Calculation Basis: Qualifying Earnings
The reform also changes how super guarantee amounts are calculated. Currently, the SG is 12 per cent of an employee’s ordinary time earnings (OTE).
From July 1, 2026, super will be calculated on qualifying earnings (QE) instead of OTE. QE includes OTE plus some additional payments, such as commissions for work performed outside of ordinary hours. The rate remains at 12 per cent.
Reporting Changes
Employers currently report either OTE or super liability through Single Touch Payroll (STP).
Employers may have to pay additional super under an industrial instrument, such as an award or enterprise agreement. These amounts may fall outside QE but can be reported as super liability in STP.
From July 1, 2026, it will be mandatory to report both QE and super liability for each eligible employee through STP on every payday. STP reports that do not include both QE and super liability amounts will be rejected from July 1, 2027.
Late Payments & Super Guarantee Charge
The SG charge (SGC) is being overhauled. Currently, the SGC is self-assessed by the employer, calculated on salary and wages and is not tax deductible.
From July 1, 2026, the SGC will be assessed by the ATO, calculated on QE, and will include interest that compounds daily at the general interest charge rate plus an administrative uplift component. Unlike the current SGC, it will be tax deductible.
Penalties will also change from a maximum of 200 per cent of the SGC (which can be remitted) to fixed rates of 25 per cent or 50 per cent of the unpaid SGC, depending on prior penalties.
Closure Of Small Business Superannuation Clearing House
Employers who currently use the Small Business Superannuation Clearing House (SBSCH) to process super payments need to make alternative arrangements.
The SBSCH closed to new users on October 1, 2025 and existing users have access only until June 30, 2026. From July 1, 2026, the SBSCH will no longer be available.
Related Changes
Several related changes will support the transition to Payday Super.
The SuperStream data and payment standards are being revised to allow payments through the New Payments Platform and to provide better error messaging, helping employers address payment errors faster.
A new member verification request will enable employers to confirm that a super fund can accept a contribution for an employee before making a payment for the first time.
Super funds (other than self-managed super funds) will be required to allocate or refund contributions within three business days of receipt, replacing the current 20 business day window.
A proposed change outlined by the ATO would allow employers to request a stapled super fund and offer it to a new employee at the same time as providing a choice of fund form. However, this measure is not yet law. Employers should monitor the ATO website for updates.
What Employers Should Do Now
With the July 1, 2026 commencement date approaching, employers should take the following steps.
1. Review your payroll systems and super processes to confirm they can support payday-frequency super payments and calculate super on the basis of qualifying earnings.
2. Check with your payroll software provider to find out when their STP product will be updated to report QE. Review your current STP reporting to ensure you are lodging on time and that pay codes, employee details and contact details are correct.
3. Talk to your accountant or tax professional about what other changes may be needed for your business.
4. If you currently use the SBSCH, arrange an alternative payment method before access ends on June 30, 2026.
5. Ensure your employee data is accurate and up to date, as incomplete or incorrect data is a common cause of payment errors and delays under the current system.
Employers who begin preparing now will be best placed to meet the new requirements when they take effect on 1 July 2026. Those who delay risk exposure to the new penalty regime.
More Information
If you need assistance, please contact Employer Assist on (07) 3376 6266 or hvia@employerassist.com.au.