Pay Day Super
On 4 November 2025, Parliament approved new laws to bring in Payday Super. Starting 1 July 2026, super contributions will need to be paid at the same time employees are paid.
The aim is to reduce missed or late super payments and help improve workers’ retirement savings.
Employer obligations from 1 July 2026
Employers must:
Pay superannuation contributions at the same time as wages or salary (on pay day).
Ensure superannuation payments are received by the employer’s super fund no later than seven business days from payday. Super funds then have three business days to allocate funds to the employee’s super account.
For new employees, make the first SG payment within 20 business days from the day after their first wage payment.
Comply with the updated Super Guarantee Charge rules, including stricter penalties for late or missed payments.
Transition from the ATO Small Business Super Clearing House (SBSCH); closed to new users from 1 October 2025 and closed for all users from 1 July 2026.
Calculating Super: Qualifying Earnings
The reforms introduce the term ‘qualifying earnings’ (QE). QE means the wages payable to an employee on their pay cycle day. This will then be used to calculate how much SG employers should pay.
Qualifying earnings is made up of:
An employee’s Ordinary Time Earnings (OTE) - regular salary or wages an employee earns for ordinary hours of work.
Salary sacrifice superannuation contributions.
Other amounts which are currently included in an employee’s salary or wages for SG.
Some payments, such as overtime, certain allowances, redundancy, or other one-off payments, may not be included in QE. Employers must ensure payroll systems correctly identify QE for each pay cycle.
Employer action checklist
To prepare for Payday Super, employers should:
Review your data, systems and processes to ensure accuracy and efficiency - ensure payroll data is accurate, systems can handle more frequent contributions, and processes reduce errors and manual work.
Make sure your formulas used to calculate superannuation comply with the new ‘qualifying earnings’ definition.
Review cashflow - ensure funds are available to meet more frequent SG obligations and avoid penalties.
Find a new way to make SG payments if you are using the ATO Small Business Super Clearing House (SBSCH).
Review and update any internal policies, procedures or employee documentation to reflect the new requirements.
Employers can begin making more frequent superannuation payments before 1 July 2026. Doing so allows testing of systems and processes. Just remember, the total SG contribution for each quarter must still meet existing quarterly obligations.
Now is the time to get Payday Super ready - early preparation will reduce the risk of errors, delays, or penalties under the new regime.
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